If we do not re­form the old sys­tem, the gap will be­come big­ger and big­ger.”

China Daily (Canada) - - FRONT PAGE -

press­ing prob­lem for to­day and the fu­ture. If the in­sti­tu­tional fix comes too late, the gov­ern­ment will not have enough money to care for the se­nior cit­i­zens when they re­tire.

Sev­eral prov­inces in­creased the pen­sion in­surance pay­ment re­quire­ment re­cently, which is paid monthly jointly by em­ployer, em­ployee and the gov­ern­ment. More places will follow their steps. It is es­ti­mated the av­er­age pen­sion in­surance pay­ment ac­counts for about 30 per­cent of the monthly in­come of av­er­age wage earn­ers.

The Xin­hua News Agency com­mented that Chi­nese peo­ple’s pen­sion in­surance bur­den is one of the heav­i­est in the world.

Another con­tro­ver­sial mea­sure is to post­pone the re­tire­ment age from cur­rent 60 years old to 65. But ex­perts cal­cu­late that the post­pone­ment of each year of re­tire­ment age can only con­trib­ute 20 bil­lion yuan an­nu­ally to fill the 86.2 tril­lion yuan’s gap. And the gov­ern­ment also needs to im­prove med­i­cal care for the em­ploy­ees to en­sure their health con­di­tions can meet the re­quire­ment of work­ing another five years after 60.

In fact, the gov­ern­ment

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