Date
11 December 2017

Call for China version of US pension scheme, paper says

China will face a multitrillion-yuan pension gap that government finances cannot bridge, and it is imperative that the authorities take advantage of the present higher economic growth to set up a world-class pension scheme, the China Securities Journal reported Wednesday, citing an article jointly written by the Research Center under the China Securities Regulatory Commission and the Beijing Institute of Securities and Futures. The researchers suggest three ideas, each with various contributions from government, employers and individuals, adding that one similar to the 401(k) scheme in the United States is the most important. Official data shows that there is about 2.4 trillion yuan (US$390.45 billion) in government funds in the national pension kitty, 480 billion yuan from employers and almost nothing from individuals, the report said.

– Contact HKEJ at [email protected]

TL/AC/SK

 

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