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