August 2019
30Aug

Why is Inequality Higher Among the Old? Evidence from China

By Katja Hanewald, Ruo Jia, Zining Liu This paper studies income inequality in old age and its development over the life cycle. We develop a theoretical framework and a new empirical method to show that income is more unequally distributed in old age than in working age. We combine the regression-based inequality decomposition method and the three-step mediating effect test to analyze the transmission of income inequality from initial socioeconomic differences to income inequality in old age. Our study...

August 30, 2019
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27Aug

Senators Demand U.S. Pension Fund Reject China Investment

Two senior members of the Senate Foreign Relations Committee are calling on administrators of the federal government’s main retirement savings fund to reverse a decision that they say would shift billions in investments into Chinese companies supporting that nation’s military and espionage efforts. Read also US. Blame The Fed For The Coming Pension Fund Crisis Senators Marco Rubio, a Florida Republican, and Jeanne Shaheen, a New Hampshire Democrat, sent a letter Monday to Federal Retirement Thrift Investment Board Chairman Michael...

August 27, 2019
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July 2019

31Jul

China to further raise pension benefits for retired soldiers

China will further increase pension and living subsidies for disabled veterans, Red Army veterans and families of martyrs starting Aug. 1, China's Army Day. Pension allowances for disabled soldiers, police officers and militia members, as well as families of martyrs and deceased soldiers, will be increased by 10 percent from last year, according to a statement jointly issued by the Ministry of Veterans Affairs and the Ministry of Finance. After the adjustment, yearly pension allowances for veterans disabled in...

July 31, 2019
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25Jul

China. ETFs fast gaining popularity

Chinese fund management companies should ride the boom of pension fund-of-funds providers and work closely to develop more exchange-traded fund products for longer-term retail wealth, according to a new survey. Assets under management of China's outstanding ETF products reached 381 billion yuan ($55.4 billion) in 2018, hitting a historical high, according to a study by consultancy Oliver Wyman released on Wednesday. Meanwhile, assets under management rapidly grew with close to 40 new funds launched during the year. ETFs are...

July 25, 2019
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22Jul

China to walk fine line between sustaining growth, pension system

China is attempting to walk a fine line between lowering corporate burdens to boost economic growth and making the country's pension scheme more sustainable amid an aging population. In its latest step, the government vowed to roll out a nationwide pilot program announced in 2017 that transfers stakes in state-owned firms to social security funds. This comes as the 2-trillion-yuan (about 291.55 billion U.S. dollars) reduction of tax burdens and social insurance contributions of enterprises helped lower corporate burdens...

July 22, 2019
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12Jul

China to step up state asset transfers to pension funds amid sustainability concerns

China will expand a pilot program this year to transfer government holdings in state-owned enterprises to social security funds nationwide in response to concerns about the sustainability of the pension system, said Caixin. The State Council decided at an executive meeting this week to fully push for the transfer of 10% of the equity in state-owned companies to the national social security fund and relevant local entities. The move is a further implementation of a 2017 trial plan that was limited to...

July 12, 2019
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11Jul

China’s social security funds to be replenished with state capital

China will replenish social security funds through the injection of state capital this year to make the funds more sustainable. Policies to reduce employers' contributions to social insurance schemes will be further implemented to ensure that pensions are paid on time and in full. The decision was made at the State Council's executive meeting chaired by Premier Li Keqiang on Wednesday. Li has set out measures for such capital transfer in the Government Work Report for four consecutive years....

July 11, 2019
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June 2019

14Jun

Evolving Eldercare in Contemporary China: Two Generations, One Decision (Series in Asian Labor and Welfare Policies) (English Edition)

By Lin Chen With an increasing number of elders moving into nursing homes, the shift from family to nursing home care calls for an exploration of caregiving decision-making in urban China. This study examines how a rapidly growing aging population, the one-child policy, and economic reform in urban China pose unprecedented challenges to the country’s ingrained tradition of family caregiving. It presents interviews of matched elders and their children from a government-sponsored nursing home in Shanghai and analyzes...

June 14, 2019
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May 2019

23May

China is plugging pension hole by tapping into US$25 trillion in equity in state-owned enterprises

Every month, Liu Yuan sets aside around 900 yuan (US$131), or 8 per cent, of his salary to be paid into the public pension fund, while his employer contributes about 2,000 yuan. These payments will guarantee the 33-year-old accountant of a construction company in eastern Shandong province a basic monthly pension payment of around 4,000 yuan a month when he retires in 25 years, all other things being equal. But starting this May, his employer can cut the mandatory...

May 23, 2019
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15May

China may see explosive growth of individual commercial pension insurance

Individual commercial pension insurance has the potential to see explosive growth in China as the country needs to address challenges in its pension system, according to a report by McKinsey & Company in Beijing on Tuesday. China's pension system is composed of three parts: first-level basic pension insurance, second-level enterprise and occupational annuity, and third-level individual commercial pension insurance. The structure of China's pension system is far from being balanced and sustainable. By the end of 2017,...

May 15, 2019
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