Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Xiaomi Takes on Apple in Japan With 108-Megapixel Budget Smartphone
Tencent Teams Up with Tech Firms to Build Satellite Network
JD.com's Liu Quietly Exits Posts at Several Units, but Maintains Shareholder Control
LATEST
Huawei Wins Telefonica Deal to Help Build German 5G Network
China Unveils First 3D Images From Newest Earth Observation Satellite
Tesla to Raise Prices in China Again, Sources Say
Didi Considered Safest Ride-Hailing Platform Despite Murders, Survey Shows
Risks and Benefits of China’s Private Sector Bailout
Xiaomi Budget Brand Redmi Releases Cheaper Than Expected 5G Smartphone
Major Chinese Freight Line Sees Shipments Fall 8% Amid Slumping Coal Demand
Sales of Chinese-Made Excavators Slow Amid Cooling Infrastructure Investment
BAIC Slump Persists With Bleak November NEV Figures
Shanghai Court Freezes Assets of Wanda Group Founder’s Son Wang Sicong
ByteDance Eyes Another TikTok-Like Success With New Music App
Chinese Cellphone Maker Oppo Expands Smart Hardware Offerings
Velodyne Lidar Cuts Direct Sales Team in China
Chinese Image Providers Shut Down for ‘Illegal’ Work With Foreign News
Alibaba Co-Founder Joe Tsai Invests $10 Million in G2 Esports
Tencent Teams Up with Tech Firms to Build Satellite Network
JD.com's Liu Quietly Exits Posts at Several Units, but Maintains Shareholder Control
New Campus Harassment Claims Highlight China’s Embattled #MeToo Movement
British Businesses Eye Increased China Investment Despite Concerns, Report Finds
Huawei to Equip More of Its Devices with Its Harmony OS in 2020
A Shortfall May Come Earlier Than Expected for China’s Pension Fund System

By Cheng Siwei and Zhao Runhua / Apr 15, 2019 12:59 PM / Finance

Photo: IC

Photo: IC

China’s pension fund system is heading toward a shortfall – and it may come earlier than expected.

A Wednesday report from the Chinese Academy of Social Sciences predicted that the pension funds collected in 2019 will not be able to meet expenses of the same year, based on China’s preferred payment rate of 16% of a company's total expenses on staff's salaries, not including government subsidies.

When subsidies are taken into consideration, the report shows an annual shortfall would begin in 2028, when a system debt as large as 118.1 billion yuan ($17.58 billion) is expected. The shortfall could soar up to 11.3 trillion yuan in 2050.

China's national pension fund system is not always compulsory, and many individuals as well as small businesses choose not to pay into it.

The report recommends taking more “flexible employees” – a term that often refers to freelancers – into the national pension fund system, and considering raising retirement ages. In general, men can apply to retire at the age of 60, while women can retire at 55 years old.

Related: Rich Provinces Cough Up Pension Funds to Help Struggling Peers

Share this article
Open WeChat and scan the QR code