China’s Central TV (CCTV) reports: The government announced [Friday] its urban and rural residents’ pension system is now in full operation in all of China’s 2,853 county-level administrative areas.
This marks the completion of the establishment of the largest pension insurance system in the world, 8 years ahead of schedule.
By the end of September, 449 million people had joined the urban and rural pension insurance scheme in the entire nation, among whom 124 million older than 60 have begun to receive monthly pension, accounting for 95% of the people at qualified age.
The total number of people insured, including those who have residents’ pension insurance and those who have urban and rural staff and workers’ pension insurance, exceeds 700 million.
Before 2009, there was no urban and rural residents’ pension insurance at all. Over the past three years, the pension insurance system has not only extended to an increasingly larger area, but the amount of pension old people get has increased gradually.
Now the basic pension is 55 yuan (US$8.60) per month (the lowest) and exceeds 90 yuan (US$14.10) per month on average.
China owes to the funds subsidised by the state in being able to complete the establishment of its pension insurance system 8 years ahead of schedule. In 9 provinces and municipalities in eastern China including Beijing, Tianjin, Shanghai, Liaoning and Shandong the central finance contributes half of the 55-yuan basic pension; while in other areas, it contributed all the 55 yuan.
Meanwhile, the government subsidised 30 yuan (US$4.30) for each resident who takes the insurance. Over the past 3 years, central and local governments have made a total contribution of nearly 200 billion yuan (US$31.4 billion)
- China’s rocketing elderly population prompts a rethink on pensions | Darren Wee (guardian.co.uk)
- China Is Sliding Into A Pensions Black Hole (businessinsider.com)
- China Faces Pension Crisis (chinadailymail.com)