PBOC chief urges China to deal with pension crisis
(FT.com)Updated: 2006-11-21 17:40
"Social security funds should be invested in the capital market to maintain and increase value."
China has numerous local systems, many of them paying pensions out of current contributions, and a number of experimental plans which have so struggled to produce a model which could be replicated across the country.
The central government established the National Social Security Fund in 2000 as a back-up for future liabilities but is still battling to settle how money should be paid into it.
The absence of a pension system and healthy insurance continues to drive a high savings rate in China, which in turn depresses consumption.
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