Pension Reform in China: Racing Against the Demographic Clock

23 Pages Posted: 18 Jan 2014 Last revised: 25 Nov 2014

See all articles by Hazel Bateman

Hazel Bateman

UNSW Sydney, CEPAR

Kevin Liu

School of Risk and Actuarial Studies, UNSW Business School | University of New South Wales, Australia

Date Written: November 25, 2014

Abstract

In the context of rapid demographic, political and economic change, the Chinese pension system has evolved from a scheme almost exclusively for urban and public sector workers to one with broad national coverage. However, this apparent success masks structural and governance deficiencies, which if left unresolved, could threaten the equity, adequacy and security of future retirement incomes. This article examines the key demographic challenges for China and their implications for the pension system. We then review and critically assess the current pension arrangements, including recent initiatives, and highlight likely future reforms. Overall, we advocate that the key to sustainable reform will be the establishment of a regulatory framework with well-defined governance structures for both publicly and privately managed pension assets.

Keywords: China; pension reform; social welfare; demographic transition; population ageing

JEL Classification: H55, J10, J26

Suggested Citation

Bateman, Hazel and Liu, Kevin Yi, Pension Reform in China: Racing Against the Demographic Clock (November 25, 2014). UNSW Australian School of Business Research Paper No. 2013ACTL22. Available at SSRN: https://ssrn.com/abstract=2380479 or http://dx.doi.org/10.2139/ssrn.2380479

Hazel Bateman (Contact Author)

UNSW Sydney, CEPAR ( email )

High Street
Sydney, NSW 2052
Australia

Kevin Yi Liu

School of Risk and Actuarial Studies, UNSW Business School | University of New South Wales, Australia ( email )

Sydney, NSW 2052
Australia
+61 2 9385 7119 (Phone)

HOME PAGE: http://www.business.unsw.edu.au/our-people/kevinliu

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