Latest News:  


Robust private retirement system to benefit China

By Wang Zongkai (Xinhua)

13:33, May 06, 2013

DES MOINES, United States, May 4 (Xinhua) -- Creating a more active private retirement system would work to China's best benefit both economically and socially, head of the Principal Financial Group said Friday.

It is likely for China to have a meaningful retirement reform in the near future, Larry Zimpleman told Xinhua in an interview.

A robust retirement system can create better long-term growth for China's economy by allowing for more opportunities in infrastructure development and capital market growth, Zimpleman said, adding that it is of more importance now as China's growth rate is moving down.

"We need greater long-term sources of capital that can be put into the market place and invested for 10, 15, 20, 25, 30 years," he said.

"It is the case we saw in the United States in the 1990s," when the country witnessed the highest economic growth since World War II, Zimpleman said.

Retirement contributions are the long-term capital that fuels economic growth, Zimpleman explained.

"When you look at where the net increase in capital came from in the 1990s, it was all attributable to the growth in 401(k) plans," he said, referring to a defined contribution pension plan in the United States.

Today U.S. retirement market assets have reached nearly 18 trillion U.S. dollars, which represents approximately 80 percent of total U.S. economy, one of the highest asset to economy ratios in the world.

In Zimpleman's opinion, having a private retirement system is important in moving China from an economy driven by exports to one sustained by internal demand. Such a system would also take care of one of the priorities of urbanization and balanced development of China's rural and urban areas.

Given the aging of its population, China needs a more robust and active pension system for retirement security, especially the defined contribution one, because the defined benefit systems are often difficult to manage the cost in a long term and create unsustainable financial obligations on many employers regardless of size, he said.

【1】 【2】 【3】

We Recommend:

Top 10 biggest Chinese companies 2013

Housewives' gold rush keeps price from falling

Models pose for Fuzhou Auto Fair

Antique auto show kicks off in New York

China's CAS to buy 60 Airbus planes

2013 Tianjin auto show kicks off

Email|Print|Comments(Editor:WangXin、Gao Yinan)

Leave your comment0 comments

  1. Name


Selections for you

  1. China's WZ-10 armed helicopter

  2. Pakistani soldiers carry electoral materials

  3. Long March 2-F rocket reaches launch center

  4. Crackdown on sale of overused pesticide

  5. People have pets trimmed

  6. Beijing welcomes longest subway line

  7. Box office smash: "So Young", so successful

  8. Christie's, Sotheby's go head-to-head

  9. Investors shake off speculation of new listings

  10. Bamboo's alchemic ability

Most Popular


  1. Bill Gates: Innovation from China boosts agricultural development in Africa
  2. Not much stomach for mutton over fear of fake
  3. South Korean President Park's US visit carries hope
  4. Young Chinese face hard road to happiness
  5. Commentary: Abe walks on dangerous path
  6. Celebrity diving show 'excessive': People's Daily
  7. China Voice: Salute builders of the "Chinese dream"
  8. Any future peace deal to be put to referendum
  9. Ancient Chinese tower tests classic literature buffs
  10. Why do U.S. officials visit China in succession?

What’s happening in China

Brazilian self-defense martial art gains popularity in Beijing

  1. Program helps mentally disabled get jobs
  2. Stars could face penalty over food ads
  3. Identifying real and fake lamb
  4. Suspects accused of selling tainted pork
  5. Pair profit from sales of diseased pig meat