【Pension System: Problems and Prospects】
Recently, experts again mentioned the full retirement of 63 baby boomers, raising concerns about the pressure on pension accounts. Since the establishment of the pension insurance system in 1997,
Pension personal accounts and deemed payment systems have become the main arrangements, but with the aging of the population, how will the problem of "deemed contributions" for pensions be solved in the future?
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Problem solving
With the continuous development of the mainland economy and the increasingly prominent problem of population aging, the comprehensive retirement of the 63 baby boomers has brought new challenges to the pension system.
The retirement of this generation will undoubtedly increase the pressure on pension expenditures, but it is worth noting that the mainland pension system has a certain stability and sustainability.
Pension personal account and deemed contribution system
In 1997, the establishment of the pension insurance system introduced the pension personal account and the deemed contribution system, which provided support for the stability of the pension system to a certain extent. The establishment of a personal account allows each insured person to have his or her own pension account, thus forming a certain degree of personal savings. The deemed contribution system makes up for the lack of actual contributions of some insured persons and guarantees their basic pension benefits.
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Why is it impossible to have a problem with pensions in mainland China?
Although the retirement of the 63 baby boomers will bring certain challenges to the pension system, there are several reasons why the mainland pension system as a whole does not have serious problems:
Multi-level old-age security system: The mainland is establishing a multi-level old-age security system, including basic old-age insurance, enterprise annuity, individual commercial old-age insurance, etc., thereby dispersing pension risks and reducing the burden on the government.
Implementation of reform measures: The government has been actively promoting the reform of the pension system, constantly improving the institutional arrangements, and improving the level of pension security and sustainability. For example, gradually postpone the retirement age and improve the investment and operation mechanism of personal accounts.
Dividends brought by economic development: With the continuous development of the economy, the country's fiscal revenue is also increasing, which provides a good financial foundation for the pension system and can support the issuance of pensions.
epilogue
Therefore, despite the challenges faced by the pension system, the mainland has a stable economic foundation and policy support, and it is believed that through continuous reform and improvement, the pension system will be able to cope with future challenges and ensure the basic living needs of the elderly.