Latest News:  
Beijing   Overcast/Moderate rain    9 / 12 ℃  City Forecast

English>>China Business

Govt shirks pension contributions

By Yu Fenghui (Global Times)

13:28, October 23, 2012

With many still arguing about whether China should extend the country's retirement age to shore up the financial shortfalls facing its pension system, He Ping, director of the Social Security Research Institute, recently proposed increasing workers' personal pension contributions.

As I see it, neither raising the retirement age nor forcing people to pay more to the system will address the country's pension shortage.

Workers across China already pay about 8 percent of their salaries to the country's pension scheme, much more than elsewhere in the world. Yet, personal incomes in China are still relatively low, with the average person in the country making just one fifteenth of the average US income. With earnings so low and pension fees so high, it is unreasonable to ask people to have more pension money deducted from their wages.

Actually, the real cause behind the pension fund gap is a lack of government funding. In 2011, social security funds only accounted for about 15 percent of the government's fiscal expenditures, much lower than the 30 and 50 percent seen in most developed countries.

News we recommend:
"Made in China":Charming the World "Made in China":A Boon for the Masses "Made in China":A Blessing for Businesses
"Made in China":The Bitter Blessing Shanghai's 'other' market China's tourism industry reaps golden harvest
Commentary:Asking the right questions  More Investment, More Woes? All that glitters is gold

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Navy seaplane in rescue training

  2. Border guards on patrol duty

  3. Indians dancing the night away

  4. Toys, gifts show held in Hong Kong

  5. Craftmanship of artisans in China's 'Porcelain Capital'

  6. China’s economic growth stabilized

  7. English-version of Peking Opera Classics

  8. Terrible! Japanese girl's body painting

Most Popular

Opinions

  1. Commentary: Income distribution reform
  2. China determined to be new kind of great power
  3. Evasions won't hide reality of Diaoyu theft
  4. U.S. presidential debate finale to draw attention
  5. Opportunities abound for China shale gas
  6. Canton Fair foretells grim trade outlook
  7. Officials cross line with sorghum plan
  8. Investment not enough for banks
  9. Turkey makes case for buffer zone in Syria
  10. China dominate second US presidential debate

What’s happening in China

Man catnaps stray moggie suspected of pigeon murder

  1. Short-term service helps ease burdens
  2. Official criticized for appearing on dating show
  3. Mo Yan's hometown to hail Nobel success
  4. 3,578 CPC officials busted for taking bribes
  5. China bans profiteering from religious activity