Pension Reform in China: The Need for a New Approach

May 1, 2007

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Format: Chicago

Steven V Dunaway, and Vivek B. Arora Pension Reform in China: The Need for a New Approach, (USA: International Monetary Fund, 2007) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The rapid aging of China's population over the next few decades makes it important for a new pension system with broad and adequate coverage to be put in place quickly. Pension reforms, first initiated in 1997, have become bogged down in difficulties over dealing with the "legacy costs" associated with the relatively more generous benefits provided under the old system. This paper argues that a way forward is to separate the legacy problem from the problem of setting up a new pension system, and it suggests concrete proposals for setting up such a new system which would cover both urban and rural workers.

Subject: Aging, Expenditure, Labor, Pension spending, Pensions, Population and demographics, Retirement, Wages

Keywords: Account, Aging, China, Cost, Enterprise worker, Legacy cost, Pension spending, Pensions, Public pensions, Rate, Replacement rate, Retirement, Wage, Wage growth, Wage rate, Wages, Worker, WP

Publication Details

Pages:

15
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/109
Stock No:

WPIEA2007109
ISBN:

9781451866735
ISSN:

1018-5941

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