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Pension reform in China
Author(s) -
Salditt Felix,
Whiteford Peter,
Adema Willem
Publication year - 2008
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/j.1468-246x.2008.00316.x
Subject(s) - social security , china , scope (computer science) , pension , business , population , population ageing , economic growth , national pension , old age security , finance , actuarial science , economics , political science , birth rate , market economy , sociology , demography , computer science , law , research methodology , programming language
This article analyses China's progress in creating a national old‐age insurance system, providing a detailed description of the system and an assessment of the degree to which it has so far realised its primary goal of social security for more people. Since 1997, there have been many reforms, but despite progress, the scope of the system is limited, with the coverage rate among urban employees being below 50 per cent. The rural population largely remains outside the system, and it seems likely that the majority of the population will be dependent on family support for many years to come. There is a “demographic window” until around 2015 to address these shortcomings. Extending coverage through improved compliance by employees and companies as well as the continuing financial commitment towards the National Social Security Fund are crucial to create the financial and institutional basis that can cushion the effects of a much older population in the years ahead.