Average pension in China. Pension in China: who gets paid and how much

The main problem of the pension insurance system in China is that not everyone who is entitled to it by age still receives a pension. This gives rise to the misconception that there are no pensions in China at all, although the Chinese authorities are actively expanding and reforming the support system for older generations.

“In such a rapidly developing country as China, there are essentially no pensions at all, where the law entrusts the care of the elderly to children,” Russian state channels said last week. The topic of raising the retirement age is one of the most discussed in Russia in Lately, and, of course, there were some comparisons with foreign countries. But about China there was a serious mistake.

Pensions are not for everyone

In a truncated form, the pension system appeared in the PRC as early as 1950, which was a great achievement of the Chinese Communist Party along with universal primary education and industrialization. At that time, China had a solidary pension system, that is, pensioners received payments only from the contributions of working citizens.

Pension insurance was available to a very narrow group of people: as of 1990, only 5.4% of Chinese, mostly employees of state-owned enterprises, could count on a pension. The main problem of the pension insurance system in the PRC is that not everyone who is entitled to it by age still receives a pension there. Because of this, there is a misconception that there are no pensions in China at all, although the Chinese authorities are actively expanding and reforming the support system for older generations.

Since 1995, China has gradually begun to introduce a pay-as-you-go pension insurance system, when an employee and his employer make payments to a pension fund throughout his career. Under these rules, pensioners with more than 40 years of service were entitled to payments in the amount of approximately 25% of the average salary in their region of residence. More or less finally, the pension system took shape in 1997, when the “Decision of the State Council of the PRC on the establishment of a unified basic pension system for enterprise employees” (国务院关于建立统一的企业职工基本养老保险制度的决定) was adopted.

Now the pension system in China mainly consists of two components. The first part is the basic pension: it depends on how many years the employee paid pension contributions (must be at least 15 years), and is calculated on the basis of the average salary in the province, taking into account indexation. The second part, cumulative, is contributions to the pension fund, which is paid by the employee and the employer (8% and 20% of the salary, respectively).

The average monthly pension in China in 2016 was about 2353 yuan (about 23.2 thousand rubles, in Russia this figure is 13.7 thousand rubles), although the exact amount varies significantly in different provinces. The highest average pension is in Tibet (4071 yuan), the lowest (which is still higher than the average Russian level) is in the city of Chongqing (1817 yuan). Size difference pension payments depends on the level of salaries, the number of population and the amount of subsidies from the center.

However, not everyone receives a pension: out of 230.8 million people over 60, according to the CEIC, only 152.7 million people receive payments from the state. This difference is due to a specific system of propiska in China, hukou, which was created to control the movement of the population within the country. It rigidly divides the Chinese into townspeople and rural residents and does not allow the villagers to legally work in cities, and therefore count on social insurance.

Therefore, the pension is mainly received by urban residents, while the rural population (which in 2016 accounted for 43.2% of the population of the PRC) in old age often has to rely on themselves or on the minimum basic pension. In 2017, the amount of payments to farmers was a ridiculous amount - 125 yuan.

An interesting group is represented by migrant workers from rural areas (in 2017 there were 286 million of them in China): having a rural residence permit and working all their lives in the city, they still cannot count on a city pension and strive to save as much money as possible for old age and education for children. These people are among the least protected in China and a serious source of social discontent and headache for the authorities.

Old age and children

The problem that pensions in China are not for everyone has been going on since the very beginning of the Chinese pension system. Despite the gradual development legislative framework, in the 1990s and 2000s, the penetration rate of pension insurance in China grew rather slowly. Until 2010, pension insurance coverage did not exceed 20% of the population. And even those who paid pension contributions often faced the fact that their savings were misused by the authorities.

However, by the end of the 2000s, China found that growth based on investment and exports had run its course. The main source of economic development in this situation was domestic consumption. Therefore, the Chinese authorities began to expand the pension system in order to stimulate domestic demand. More and more Chinese received SNILS: already in 2011, 45.7% of the population was included in the pension insurance system, and now this figure is about 66% (918.5 million people).

But the Chinese themselves are in no hurry to rely on the state when it comes to ensuring old age. The volume of household savings in relation to GDP in China remains one of the highest in the world: in 2015 it was 37.7% of GDP (for comparison: in the US this figure is 6.29% of GDP, in the eurozone - 5.72%) . Such huge savings are largely due to the underdevelopment of the pension system.

In the 2000s, against the backdrop of economic growth, household incomes went up sharply. After China's accession to the WTO and the partial opening of the Chinese market to foreign companies, the Chinese have got a job, which, combined with a desire to secure a decent old age for themselves and a lack of faith in pension insurance, has led to an increase in savings. The peak of the share of household savings in the Chinese economy occurred in 2010 (38.9% of GDP).

Now, thanks to the expansion of pension insurance and numerous measures aimed at stimulating private consumption, this figure is gradually decreasing, although the Chinese are still eager to save money under the mattress, invest in the next living space or in cryptocurrency, rather than spend it on current consumption.

The Chinese are actively saving money also because they cannot rely on children in their old age, contrary to the assurances of Russian state channels. The demographic policy "one family - one child", which was carried out from 1979 to 2015 with various indulgences in the 1990s and 2000s, seriously influenced the structure of society, where the task of supporting two elderly parents fell on the shoulders of an only child.

Due to birth control and rising life expectancy, China's population has begun to age rapidly. If in 1960 the proportion of people over 60 was only 6.1%, and the average life expectancy at birth was 43 years, then, according to data for 2016, people of retirement age already account for 16.7% of the population (this is 230, 8 million people, one and a half times the total population of Russia), and the Chinese began to live on average up to 76 years.

As a result, China is in a situation where the working population can no longer provide for pensioners. The figures vary greatly from province to province: if in wealthy Guangdong there are nine working people per retiree, then in northeast China, which is most affected by the economic slowdown, this proportion is 1 to 1.5. The state has had to cover the pension deficit for four years in a row: as of 2016, the hole in the Chinese pension fund reached 429.1 billion yuan (about $66 billion).

Chinese Pension Reform

Due to the increasing burden on the state budget, the Chinese authorities have been discussing raising the retirement age for several years, which causes heated debate in society and the media. Now retirement age for men is 60 years, for women - 50-55. It was originally planned that the increase would occur in 2017, but there have been no changes so far.

However, the Ministry of Human Resources and social security The PRC promises that by 2045 the retirement age in China will definitely be raised to 65 years, both for men and women. Due to this, officials are going to increase the size of pensions: for example, in 2018 they have already increased by 5.5% and reach an average of almost 2.5 thousand yuan (about $370). For comparison: in 2005, the average pension was 640 yuan (about $80).

Also, the Chinese authorities are trying to accustom the population to invest in non-state pension insurance (for example, with the help of preferential taxation). Now this experiment is being carried out in Shanghai and in Fujian province, the richest coastal regions of the country. So far, the market for individual pension insurance in China is relatively small, but it promises to grow at an average of 21% per year until 2025.

The main factor restraining the growth of the burden on the state budget, according to KPMG forecasts, will be the development of the accumulative pension system, the volume of which will grow by an average of 28% per year. By 2025, the proportion of people of retirement age in China will approach 25% of the population, which, with the existing pension insurance system, could result in a rapid increase in the debt burden on the budget and an increase in social tension.

The issue of pensions and social insurance is one of the priorities for Beijing. It occupies a special place in the reform program of the Chinese leadership. The main problem is that pensions are still not available to the entire population of China, although, according to the authorities, they should consume more and more in order to increase economic growth, and not save money for old age.

Objectively, the existing system is imperfect, does not meet the level of development of Chinese society for a long time and is fraught with serious social discontent. And if the number of protests by Chinese workers due to failed pension reforms increases, then the consequences will be felt not only by the authorities in Beijing, but also by the rest of the world.
/ The opinion of the author may not coincide with the position of the editors /

The demographic statistics of the People's Republic of China are such that the number of people old age is growing steadily. According to international standards adopted by the UN, the excess of the proportion of elderly citizens over 65 years old of the threshold of 7%, and the number of people under 14 years of age - less than 30%, allows us to call the population of the country under consideration old.

According to the latest count, there are already more than 170 million elderly people in China. Approximately 13% of Chinese are classified as elderly. At present, the PRC is witnessing an intensification of the process of general aging of the population, despite the fact that the government is taking measures aimed at a balanced birth rate. A large number of the elderly entails the need for the state to fulfill its social obligations to the pensioner.

Current situation in China

The rate of aging in the People's Republic of China is rapid, while the same figure for the number of able-bodied persons is much lower. In 2015, the issue of aging forced China's legislature to lift its earlier general ban on having a second child in a family. With this measure, the authorities hope to partially reduce the severity of the problem by the time the children enter working age and can work and pay taxes.

But even with the lifting of the ban, demographic growth will ensure the influx of taxpayers only after 15 years, when new millions of Chinese reach retirement age, which will not completely solve the problem.

A feature of pension provision in China is the tradition of children taking care of their own parents. In addition, even after reaching retirement age, not all citizens in China begin to receive payments from the state.

Under the current pension system, only 55% of all Chinese can expect to receive monthly transfers: the law limits not only the age of pensioners, but also employment categories. Funds deducted from future pensions can be used by the state for the purpose of making a profit.

Another disappointing rule is that the law does not provide benefits for pensioners in China.

Amounts of pension payments and deductions

Despite the fact that the Chinese economy has developed significantly over the past three decades, the issue of pension contributions is still relevant. It is rather difficult to determine the average pension in China, due to significant differences between different regions, as well as discrepancies in regional laws.

The amount of the old-age pension for each region differs and correlates with 1/5 of the amount of average earnings paid in a particular city, and 1/10 of the average earnings in rural areas. In addition, during his work, a citizen deducts funds to his personal pension account, which then go to an additional payment of 60% of the average salary in the region. This payment is subject to inflation indexation. The funds deducted by the Chinese to their own account are accumulated in the China Pension Fund, aimed at preserving and extracting additional profit from the amounts entrusted to it. The State Fund has the authority to invest in the purchase of various securities of Chinese enterprises.

The absence of a single rate for payments has led to significant differences between pensions in neighboring regions. The availability of a pension in China and its size depend on the following parameters:

1. Place of residence (City or rural area).
2. Place of work (State or private enterprise).
3. The age of the citizen (reaching the appropriate age).

With regard to citizens living in rural areas, the process of paying pensions is new. The right to a pension for rural residents has appeared only since 2009, although the amount of payment is extremely small and insignificant compared to transfers to urban residents. If a rural pensioner receives no more than one hundred yuan, then city dwellers receive up to one and a half to two thousand yuan. Of great importance is which region the pensioner belongs to.

Budget employees do not have to worry about their deductions, all deductions are made by the state, and the amount monthly payment correlates with the salaries of state employees.

If a citizen works in a commercial structure, payments to Pension Fund are carried out in the following order:

• The employee deducts 7-8% of the monthly earnings;
• At the expense of the employer, 3-4% is deducted to the fund.

In some regions of the PRC, the size of the pension is formed at enterprises where the employees themselves accumulate savings for future old age. In the future, the organization pays them pensions based on the amount that has been collected during their work.

Who is entitled to a pension?

In order to receive a pension in China, several parameters must be met:

1. Age matching.
2. Work experience of 15 years.
3. The presence of contributions to the Pension Fund of China.

Depending on gender and type of employment, the age threshold differs:

• the age of a male pensioner must be over 60 years;
• administrative workers are entitled to a pension upon reaching the age of 55;
• when engaged in physical labor, the age of women retiring is reduced to 50 years.

These age limits were set 50 years ago and still have not changed. Given that life expectancy in China has increased significantly since then, the number of pensioners has increased, and the state has increased the financial burden of providing social services to its aging citizens. Considering that the life expectancy of a Chinese has reached 75 years for men and 73 years for women, it is time to decide on an increase in the retirement age threshold.

The Ministry of Labor of the People's Republic of China is taking steps to introduce a program to gradually increase the retirement age. This program is designed for 30 years, according to the results in 2045, the retirement age is expected to be set at 65 years.

With regard to the period of work, the state makes a requirement - a Chinese person who claims to receive a pension from the state must work at the enterprise for at least 15 years, and also deduct to the state fund on account future pension the amount of a total value of 11% of monthly earnings.

In order to make tax deductions, the employer does not ask permission from the employee, but does it independently and unilaterally. The regional legislation of individual districts provides for the possibility of using their own systems of pension savings, from which pensions will then be paid. These funds are organized by the enterprises that employ citizens.

Problems of the Chinese system

The peculiarity of China's pension system is closely related to the consequences of the reform that has been implemented in the country for many years. According to the law, each Chinese family has the right to have only one child, and only as an exception was it allowed to have two children under certain conditions:

• the parents of the second child had to be the only children, i.e. not have brothers or sisters;
• the second child could only be born when the first baby was 4 years old;
• the second child was allowed in the families of rural residents;
• the restriction on the number of children did not apply to families of representatives of small nationalities (their share of the total number of citizens should not exceed one tenth).

These measures were supposed to protect against hunger and alleviate the acute problem of scarcity of natural resources in a situation of rapid growth in the number of the Chinese people. Over time, the growth rate became less of an issue, and the aging of the nation came to the fore.

Another negative consequence This reform was concluded in violation of Chinese principles - in the family, grown-up children were obliged to support their elderly parents. One of the basic rules was violated: the main duty of children is to help their parents. A modern Chinese family with one child can hardly count on their grown-up child to be able to provide for them. The financial burden can be overwhelming. In these conditions state aid retirement is one of the most important for the vast majority of the country's population.

In almost all countries of the world, the authorities are concerned that their elderly citizens can receive pension payments and count on all sorts of benefits and allowances. But it is difficult to compare how Russians live in old age and pensioners in China, since in the latter case, even in 2020, many Chinese do not receive it at all and they have to rely on their grown children or get out in other ways.

Everyone needs to know about these moments, especially with the desire.

How does the pension reform work in China today, and what is the old-age pension in China for different segments of the population?

In general, in China, depending on the region, unlike, for example, an old-age pension may have different sizes The same applies to places of work and residence. Urban residents, for example, receive payments in the amount of 20% of the average salary in the region or province, while the rural population can expect to receive no more than 10%. This is due to the fact that the rural worker does not pay any contributions and, as a result, does not have a labor part of pension payments. The amount of the pension may depend on various factors, for example:

• region of residence and implementation labor activity;
• work experience (at least 15 years);
• professions;
• average salary.

There may be other factors that affect pensions in the future, since there is no general one throughout the country, and therefore it is difficult to say what the average pension in China is. These figures can range from 600 to 1500 yuan, in some cases as little as 50+ yuan. As for preferential categories and allowances, this is not provided for pensioners in the country.

Pension Crisis

Today, China's pension system is in a difficult position, this is largely due to the once-promoted political doctrine, "one child per family." And because, on average, the life expectancy of the Chinese has increased in the country.

You can’t even compare how many of the population are Russian pensioners in Russia and the Chinese in their homeland, because there are already more of them than the entire population of the Russian Federation put together, and so far every year there are more of them. Thus, the Chinese nation is aging, and this is a big pressure on the economy, because each young employee makes pension contributions that are distributed to several people.

Expert forecasts agree that by the middle of the century there will be less than 2 able-bodied Chinese per pensioner, so the authorities are considering increasing the retirement age by five years. But there is another reason that complicates the situation with pensions, this is the distrust of the Chinese to all kinds of funds.

The population prefers to keep savings at home, despite the fact that there are fines for this and constant monitoring is carried out. Many organizations also try by all means to hide the full income from the authorities. All this has led to the fact that pension funds lose billions of money every year.

There is also a problem in the work of state structures dealing with pension issues, as the number of retired people in China is steadily increasing. They do not have time to cope with such a large number, so the authorities are also planning to reform this sector.

The first pension system in China began to appear in the early years of Mao Zedong's rule - in the 1950s. The Chinese Communists even promoted it as one of their achievements along with the introduction of universal primary education and industrialization. But from then until the 1990s, very few Chinese old people really received pensions - about 5.4%, mostly employees of state structures and state-owned enterprises. The aged peasants, and the peasants then made up the majority of the population of the country, could not count on a pension. Here one can involuntarily draw a parallel - after all, in the USSR for most of its history there was a similar system: former collective farmers could at best count on a purely symbolic "collective farm" pension, the size of which was several times less than in cities. And in the USSR until the 1960s, peasants also made up the majority of the population.

But "since 1995, China has gradually begun to introduce a pay-as-you-go pension insurance system, when an employee and his employer make payments to a pension fund throughout their career, -. - According to these rules, pensioners with more than 40 years of service were entitled to payments in the amount of approximately 25 % of the average salary in their region of residence More or less finally, the pension system took shape in 1997, when the "Decision of the State Council of the People's Republic of China on the establishment of a unified basic pension system for enterprise workers" was adopted.

Now the pension system in China mainly consists of two components. The first part is the basic pension: it depends on how many years the employee paid pension contributions (must be at least 15 years), and is calculated based on the average salary in the province, taking into account indexation. The second part, cumulative, is contributions to the pension fund, which is paid by the employee and the employer (8% and 20% of the salary, respectively).

The most interesting thing is the size of the current Chinese pension. On average in China, as of today, it is already 2,353 yuan - 23,200 in terms of rubles. Let's compare - in Russia the average pension is about 14,000. At the same time, residents of provinces with harsh natural conditions receive even more - up to 4,071 yuan on average in Tibet. In Chongqing, old people are paid 1,817 yuan (the lowest pension in China), but even this is much more serious than most average Russian pensions.

True, not everyone still receives a pension, but not even 5.4% as under Mao - out of 230.8 million Chinese over 60 years old, already 152.7 million people, i.e. majority. In China, alas, they continue to actually discriminate against rural residents.

"Such a difference is associated with a specific propiska system in China, the hukou, which was created to control the movement of the population within the country, -. - It rigidly divides the Chinese into townspeople and rural residents and does not allow the villagers to legally work in cities, and therefore rely on social insurance.

Therefore, the pension is mainly received by urban residents, and the rural population (which in 2016 accounted for 43.2% of the population of the PRC) in old age often has to rely on themselves or on the minimum basic pension. In 2017, the amount of payments to farmers was a ridiculous amount of 125 yuan.

An interesting group is represented by migrant workers from rural areas (in 2017 there were 286 million people in China): having a rural residence permit and working all their lives in the city, they still cannot count on a city pension and strive to save as much money as possible for old age and for the education of children. These people are among the least protected in China and a serious source of social discontent and headache for the authorities."

Nevertheless, in China, from year to year, the coverage of the population with "normal" and not "collective farm" pensions is still expanding, since the traditional parting word "count on children in old age" will not work in China - a tough demographic policy of "one family" has been implemented here for many decades - one child", which began to be abandoned only very recently. The task of supporting two elderly parents is assigned to the shoulders of an only child, which, of course, is an unbearable burden. Also, due to the aging of Chinese society, the proportion of older people grew from year to year - if in 1960 only 6.1% were over 60 years old (average life expectancy was 43 years), now people of retirement age already account for 16.7% of the population ( average life expectancy - 76 years).

As a result, a situation is developing in China when the working population, as well as in European countries, Russia can no longer provide for pensioners. The state has had to cover the pension deficit for four years in a row: as of 2016, the hole in the Chinese pension fund reached 429.1 billion yuan (about $66 billion). It is not surprising that in China they also started talking about the need to raise the retirement age - now it is 60 years for men, as in Russia, and even less for women - 50-55 years.

China's Ministry of Human Resources and Social Security plans that by 2045 the retirement age in China will be raised to 65 years for both men and women. Due to this, officials are going to increase the size of pensions: for example, in 2018 they have already increased by 5.5% and reach an average of almost 2.5 thousand yuan (about $370). For comparison: in 2005, the average pension was only 640 yuan (about $80). Also, the Chinese authorities are trying to teach the population to invest in non-state pension insurance (for example, with the help of preferential taxation). But while forcing pension reform China is in no hurry to raise the retirement age, as they are afraid of a social explosion. First, according to the Chinese authorities, it is necessary to raise the standard of living of the people to the bar of the developed countries of the world.

The pension system in China is one of the youngest in the world. It appeared only in the middle of the 20th century. But for a long time, pensions in China were inaccessible to ordinary people.

In 1990, no more than 6% of older Chinese could expect to receive a pension, mostly officials and other government employees. This is primarily due to the large percentage of the elderly population, which still persists. In 2017, about 250 million people over the age of 60 were registered in China. After the law on the ban on the second child in the family, the Chinese authorities had to rebuild the pension system from scratch.

Pension contributions of employees and employers

The pension budget is formed from the contributions of employers and employees after the conclusion of an employment contract. Now the amount of payments after retirement in China consists of two parts - basic and funded pensions.

There are no fixed pension contributions in China. Contributions to the basic pension amount to no more than 25% of the average salary in the region and must be paid for at least 15 years. Workers who have been contributing for less than 15 years receive a minimum pension and cannot count on social insurance.

funded pension consists of deductions from the employee in the amount of 8% of the salary and the employer, who pays 20%. This primarily concerns the private sector, which must make contributions every year. State organizations automatically send the necessary contributions, employees do not deal with any reporting.

China old age pension

The retirement age in China varies by region. On average, men retire at 60 and women at 55. Women who do manual labor can legally retire at 50.

The average old-age pension in China is about 2,400 yuan, which is about 23,000 Russian rubles. However, the fragmentation of many regions and provinces of China also affects the statistics. For example, a Chinese citizen living in Tibet will receive about 4,100 yuan (23,000 rubles), and a resident of the city of Chongqing will receive no more than 1,820 yuan (17,400 rubles).

The amount of pension payments is directly related to the average salary in the region or province - the percentage of contributions to the Pension Fund is tied to this amount. In addition, an important factor is the amount of population and subsidies that the region receives from Beijing.

The chosen profession also seriously affects the amount of pension contributions. Employees of state enterprises, private entrepreneurs and officials receive higher pensions.

On this moment one in four elderly Chinese citizens receive pension payments.

Problems of China's pension system

China's young pension system has many serious problems. First of all, this is due to the demographic miscalculation of the 70s of the last century. It was then that the birth control law was introduced, which in one generation seriously reduced the percentage of youth and aged the Chinese population. Two middle-aged citizens will soon be working to pay a pension to one elderly resident of China.

Also, Chinese officials have repeatedly raised the issue of raising the retirement age. The threshold of 60 years for men and 50-55 for women was set in years when the average life expectancy in China did not exceed 60 years. At the moment, the state pays pensions on average for 20-25 years - this is an important item of budget expenditures. Despite the fact that the Communist Party has not yet submitted a project to raise the retirement age, it is known that this process will drag on for at least 3-5 years. Chinese officials have repeatedly stressed that raising the retirement age should take place in stages.

Despite all the innovations of the Communist Party, as of 2018, not all elderly Chinese receive a pension. Of the 231 million citizens over 60 years old, only 153 million people receive pension payments. This is due to the specifics of residence in China. This system is called hukou and was developed by Chinese officials to control the internal migration of the population. It divides the population of China into two broad categories: city dwellers and farmers. Rural residents cannot legally work in cities and draw up employment contracts. They receive a salary in envelopes, keep black books and do not have the opportunity to receive social insurance.

This is a serious problem for modern China, since the population of rural areas is at least 40%. However, the hukou serve their primary function of deterring internal migrants, controlling migrant workers from other countries, and distributing China's large population relatively evenly.

The hukou system was introduced by Mao Zedong in 1954. In many ways, it is relevant now because of the mentality of the Chinese population - in rural areas, the connection with traditions is stronger and the young population takes care of the older generation. However, the demographic crisis makes the situation precarious - it is extremely difficult for an only child in a family to support both parents, especially if they live in rural areas with low wages and little career opportunities.

Pension payments are mainly received by the urban population, while rural residents receive a minimum bonus, work until old age, or rely on the help of their children and grandchildren. The minimum premium in China is about 130 yuan (1240 Russian rubles).

Prospects for the development of the pension system

Reforming China's pension reform is an urgent and extremely important task for the future of domestic policy. Chinese officials have repeatedly made various proposals to improve the modern system of payments to pensioners. The most popular of them are:

1. Smooth increase of the retirement age in two or more stages. The question of raising the retirement age to 62 for Chinese pilots has been raised more than once. Experts on China's domestic policy say that it is planned to increase the retirement age for professions and types of employment. First of all, the retirement age will be raised for teachers, doctors and social workers.
2. State pension provision should cover the entire population of China. Despite the fact that every year pensions are paid all more Chinese citizens, at least 75 million people receive no pension contributions, apart from a tiny minimum pension. This is due to the difficulties of obtaining social insurance for rural citizens, and the reluctance of many employers to pay interest on wages to the Pension Fund.
3. Creation of a reserve fund for additional pension expenses. As the experience of the neighbors of the People's Republic of China and far abroad has shown, the reserve pension fund is the guarantor of payments to the population Money in the event of, for example, unsuccessful investment of the funded part of the pension or an increase in the inflation rate in the country. It creates an airbag for the elderly citizens of the country, who can be sure of the safety of their pension.
4. Reformation of the hukou registration system. In particular, the expansion of labor opportunities in the legal field for rural residents. The hukou system creates a number of privileges for urban residents and seriously infringes on the rights of rural residents. Despite the fact that there is no talk of abolishing the hukou system, the issue of simplified obtaining urban registration and expanding rights for rural residents was raised.

There are many ways to modernize: increasing social funds for pensioners, increasing the percentage of payments to the Pension Fund or establishing a tax for employers, eliminating the difference between the pensions of civil servants and private sector employees, and minimizing the difference in pension payments by region.

China's communist agenda implies a special vector for the development of pension reform, which excludes drastic changes, focusing on the experience of the West, or abandoning the decisions made by Mao Zedong. However, with China's booming economy and low level unemployment successful reform of the pension reform can take place in a short period.