Hidden liabilities on China’s annuity system could amount to over 20 trillion yuan (US$3.3 trillion), the China Securities Journal reported Thursday, citing a projection made by the Chinese Academy of Social Sciences (CASS). The CASS noted that the United States’ expenditure on annuities in 2012 was US$783 billion, while reserves stood at US$2.73 trillion, translating to a payment capability ratio of 347 percent. China’s corresponding ratio for 2012 was only 154 percent, with reserves of 2.4 trillion yuan and expenses of 1.5 trillion yuan, the report said. A United Nations survey had earlier estimated that the number of people aged 60 or above in China will make up for 32.8 percent of the nation’s population by 2050, compared to 27 percent in the United States, the report noted.
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