By Daisy Ho

China faces mounting pension and retirement challenges, but it’s not without silver linings.

It’s well known that China’s huge and rapidly aging population will grapple with a shortage of pension coverage that looks set to worsen over the next few years. There is no quick fix for state pensions falling short of growing retirement needs, but policymakers see promoting private retirement saving schemes as a key means of filling the gap.

Here, we see some encouraging signs, especially when it comes to a general awareness in China of the importance of saving, and of building up a nest egg for a rainy day.

According to the results of a new survey from Fidelity International, China scores higher than most global peers when it comes to the overall financial wellness of its citizens, a foundation that will underpin the development of private, or third-pillar, pensions.

In a financial wellness survey of 17,000 people across Canada, the Chinese mainland, Germany, Hong Kong, Japan and the United Kingdom, urban Chinese mainland respondents scored the highest on average, chalking up 71 out of 100 points. The survey measured financial health across a range of factors, including saving, budgeting, emergency cushion and debt.

High saving awareness and adequate emergency funds set China apart from global peers, although Chinese residents lagged slightly on the prudent use of debt. China scored 18 out of 25 points on both saving and protection, leading other nations by a wide margin.

Read more @China Daily