| Home
Chinese pension scheme likely to be changed
Philippines News.Net
Tuesday 1st December, 2009
The aging population of China is threatening the current pension system.
China's one child policy has ensured that the workforce will not be able to hold at current levels.
Economists in China have blamed a combination of the sole child policy and an inadequate national pension system for some of the current social and industrial problems.
According to the Ministry for Labour and Social Security, by 2030 twenty three percent of the population will be over 60 years, meaning 351 million new pensioners will need to be paid.
The aging factor will cause a drain on state coffers, consequently requiring an increase in the percentage of citizens not working to be carried by those in work.
Currently, the ratio is about 3 workers per 1 retiree.
In 20 years it will be 2 to 1.
Economists have said the phenomenon will threaten the system of private savings and cause salaries to fall.
Wage growth was 5.3% per year in 2000.
By 2020 it is only expected to grow by 2.9%.
The current Communist economy grants Chinese workers a pension guaranteed by the state and is not connected to contributions paid by the worker.  Email this story to a friend
Have your say on this story
|
|
