Old-Age Support System and Policy Reform in China

Abstract

With the on-going economic transition from the central planned system to a marketoriented system, the population aging process in China is also accelerating, and the support system for the elderly becomes an important issue demanding attention. With data from Chinese national statistics and a regional probability sampling survey in Wuhan Area, two supporting systems for the aged in China are examined in this paper. After a briefing of the population aging process in China, a detailed discussion of the two supporting systems, i.e. the formal and the informal support systems for the aged, including arrangement, operation and funding mechanisms of the systems, is made in terms of policy reform. Then follows an international comparison to highlight features and problems of the Chinese systems. Finally, solutions are proposed for the restructuring of China's pension systems.