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Evaluation on the Pension System Reforms in China
- 1 Basis International School Park Lane Harbor, Guangdong, China
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Abstract
The pension system reforms in China since 2014 have aimed to address significant structural challenges, focusing on the feasibility, sustainability, and equity of the system. This paper evaluates these reforms, particularly their impact on three main pension tracks: public employees, enterprise employees, and rural residents, represented by track A, B, and C, respectively. Despite merging certain pension schemes and introducing a universal basic pension, disparities persist, particularly for rural populations, who remain underserved with low replacement ratios. The analysis reveals systemic inequalities, financial imbalances, and unsustainable funding trajectories exacerbated by China's aging population and declining fertility rates. Drawing lessons from Japan and other nations, the paper proposes policy recommendations, including raising the pension eligibility age, rebalancing pension benefits, and enhancing individual pension accounts through tax incentives and improved financial literacy. These reforms aim to mitigate existing disparities, promote fiscal sustainability, and ensure equitable retirement outcomes, emphasizing the need for structural adjustments to achieve long-term effectiveness in China's pension system.
Keywords
Inequalities, financial sustainability, pensions
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Cite this article
Peng,Z. (2025). Evaluation on the Pension System Reforms in China. Advances in Economics, Management and Political Sciences,163,1-9.
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