China’s retirement income system comprises an urban system and a rural social system as well as systems for rural migrants and public sector workers. The urban and rural systems have a pay-as-you-go basic pension consisting of a pooled account (from employer contributions or fiscal expenditure) and funded individual accounts (from employee contributions). Supplementary plans are also provided by some employers, more so in urban areas.
The overall index value for the Chinese system could be increased by:
- continuing to increase the coverage of workers in pension systems
- introducing a requirement that part of the supplementary retirement benefit must be taken as an income stream
- increasing the state pension age over time
- offering more investment options to members and thereby permitting a greater exposure to growth assets
- improving the level of communication required from pension plans to members.
|The Chinese index value fell from 48.0 in 2015 to 45.2 in 2016 primarily due to a reduction in the assumed level of support provided to the poor.|
The Chinese index value fell from 49.0 in 2014 to 48.0 in 2015 primarily due to the increase in life expectancy.
The Chinese index value increased from 47.1 in 2013 to 49.0 in 2014 primarily due to the introduction of tax incentives for employee contributions and improved coverage of workers in pension schemes.
|The Chinese index value increased from 45.4 in 2012 to 47.1 in 2013 primarily due to the impact of the revised tax question and the recognition that investment income in pension plans is tax exempt.
|The Chinese index value increased from 42.5 in 2011 to 45.4 in 2012 primarily due to recent decrees which required pension assets to be included in divorce settlements and ongoing improvements in the regulatory framework.|
|The Chinese index value increased slightly from 40.3 in 2010 to 42.5 in 2011 due primarily to
recent decrees which improved the regulatory framework.
|The Chinese index value fell from 48.0 in 2009 to 40.3 in 2010 due primarily to a recognition that the national pension system does not yet cover the whole country.|