Download or read book Population Aging and Pension Systems written by F. Desmond McCarthy and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using an integrated simulation model, the authors estimate the scope and speed of population-aging in China, the cost of supporting the old, and the impact of different reform options and pension arrangements. Among their conclusions: The scope and speed of population-aging in China make the present pension system financially unsustainable, even assuming that GDP grows steadily in the long term. Moving the retirement age back would provide a temporary fix for the current pay-as-you-go pension system but would be politically viable only where there is great demand for labor. Pension funds could be made more sustainable by increasing GDP growth, raising contribution rates, or gradually reducing benefit rates. But the financial costs and social obstacles of those reform options must be carefully assessed. Fully funded, privately managed pension schemes might be feasible, but require a sound regulatory framework and institutional infrastructure, including financial markets that provide adequate savings instruments and insurance options. Pension reform is a long-term, multidimensional problem involving economic, social, political, and cultural factors. Governments should not focus only on taxes and transfers to redistribute income to and among the elderly. Real income growth is needed to cope with poverty among the elderly, especially in developing countries. To establish an adequate, efficient, and equitable social security system, China must maintain long-term socioeco nomic stability and sustainable growth. China could improve the labor market by removing management rigidities, facilitating human resource development, making labor markets more competitive, improving the household registration system, improving incentives, and rewarding hard and innovative work. To reduce unemployment, China can create more job opportunities in nontraditional sectors, especially its underdeveloped service industries. To shift jobs to the nonagricultural sector, it can develop medium-size cities. And to cushion the impact of demographic shocks, China should preserve traditional values and maintain family-community support. Drawing on experience in Europe and Latin America, China should move toward a transparent and decentralized system with 1) a fully funded, portable, defined-benefit pension plan, designed to meet basic needs, and 2) occupational pension plans or personal savings accounts to satisfy demand for maintaining or improving living standards.

Download or read book Population Aging and Pension Systems Reform Options for China written by Desmond F. McCarthy and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: May 1996 Using an integrated simulation model, the authors estimate the scope and speed of population-aging in China, the cost of supporting the old, and the impact of different reform options and pension arrangements. Among their conclusions: The scope and speed of population-aging in China make the present pension system financially unsustainable, even assuming that GDP grows steadily in the long term. Moving the retirement age back would provide a temporary fix for the current pay-as-you-go pension system but would be politically viable only where there is great demand for labor. Pension funds could be made more sustainable by increasing GDP growth, raising contribution rates, or gradually reducing benefit rates. But the financial costs and social obstacles of those reform options must be carefully assessed. Fully funded, privately managed pension schemes might be feasible, but require a sound regulatory framework and institutional infrastructure, including financial markets that provide adequate savings instruments and insurance options. Pension reform is a long-term, multidimensional problem involving economic, social, political, and cultural factors. Governments should not focus only on taxes and transfers to redistribute income to and among the elderly. Real income growth is needed to cope with poverty among the elderly, especially in developing countries. To establish an adequate, efficient, and equitable social security system, China must maintain long-term socioeco nomic stability and sustainable growth. China could improve the labor market by removing management rigidities, facilitating human resource development, making labor markets more competitive, improving the household registration system, improving incentives, and rewarding hard and innovative work. To reduce unemployment, China can create more job opportunities in nontraditional sectors, especially its underdeveloped service industries. To shift jobs to the nonagricultural sector, it can develop medium-size cities. And to cushion the impact of demographic shocks, China should preserve traditional values and maintain family-community support. Drawing on experience in Europe and Latin America, China should move toward a transparent and decentralized system with 1) a fully funded, portable, defined-benefit pension plan, designed to meet basic needs, and 2) occupational pension plans or personal savings accounts to satisfy demand for maintaining or improving living standards.

Download or read book Pension Sustainability in China written by Randong Yuan and published by Taylor & Francis. This book was released on 2021-11-29 with total page 141 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pension Sustainability in China: Fragmented Administration and Population Aging aims to investigate the impact of fragmentation and population ageing on pension sustainability in China. The book demonstrates how pension sustainability is compromised by various adverse effects produced by fragmentation, such as the moral hazard caused by the disarticulated intergovernmental fiscal responsibility. An overlapping generations (OLG) model is updated with the latest demographic data and is used to assess the impact of population ageing on pension sustainability. The book considers whether adjustment in retirement age can ensure long-term financial sustainability. It explores how, compared to the population ageing, the issues stemming from the fragmentation pose a more insidious threat to pension sustainability in China.

Download or read book Social Security Reform written by Jason Z. Yin and published by World Scientific. This book was released on 2000 with total page 512 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first-ever book to provide a comprehensive analysis of Chinese social security reforms with a variety of views. It addresses issues such as what kind of social security system China should establish, how this system should be managed and financed, and how the transition from the old system to the new system can best be accomplished. The authors of the papers in this book include internationally renowned Chinese and Western social security experts (such as Martin Feldstein and Henry Aaron), Chinese policy makers, and scholars who have worked on Chinese social security for years.

Download or read book China s Pension System written by Mark C. Dorfman and published by World Bank Publications. This book was released on 2013-03-08 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: Comprehensive reform of China s pension and social security system is an essential element of achieving its objectives of a harmonious society and sustainable development.

Download or read book Old Age Security written by Ramgopal Agarwala and published by World Bank Publications. This book was released on 1997-01-01 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: The seventh edition of this annual report reviews the long-term prospects for developing countries in light of changes in the global environment and provides a detailed discussion of selected aspects of the global integration process in those countries. The first chapter evaluates prospects for the major elements of the external environment affecting developing countries and the medium-to-long-term outlook for developing countries themselves. The report forecasts that the external environment for developing countries remains broadly favorable. Among the main policy challenges faced by these countries is their ability to adapt to long-run shifts in market opportunities and heightened competitive pressures brought on by global trade liberalization--now increasingly focused on liberalization of trade in services--rising global production, and other forms of global integration. The chapter considers the implications for the world economy of rapid growth and integration in large developing countries such as China, India, and Brazil in the period to 2020. The second chapter looks at the move toward greater globalization of production, broadly defined as cross-border production by multinational enterprises and their networks of affiliates, subcontractors, and other partners. Within this context, the chapter addresses the significance of global production in world output in main groups of countries and economic sectors; factors driving the trend toward global production, including heightened competition, worldwide policy liberalization, and rapid technological progress; the benefits that developing countries can derive from global production, such as new technologies and improved efficiency practices; and the issues for policymakers seeking to enhance participation in global production and maximize its benefits for host countries.

Download or read book Population aging and pension sytems reform options for China written by F. Desmond McCarthy and published by . This book was released on 1996 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Pension Reform in China written by Steven Vincent Dunaway and published by International Monetary Fund. This book was released on 2007-05 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rapid aging of China's population over the next few decades makes it important for a new pension system with broad and adequate coverage to be put in place quickly. Pension reforms, first initiated in 1997, have become bogged down in difficulties over dealing with the "legacy costs" associated with the relatively more generous benefits provided under the old system. This paper argues that a way forward is to separate the legacy problem from the problem of setting up a new pension system, and it suggests concrete proposals for setting up such a new system which would cover both urban and rural workers.

Download or read book China s Pension System written by Mark C. Dorfman and published by World Bank Publications. This book was released on 2013-04 with total page 265 pages. Available in PDF, EPUB and Kindle. Book excerpt: Comprehensive reform of China’s pension and social security system is an essential element of achieving its objectives of a harmonious society and sustainable development. Over the past few years, the Government has considered various options and initiated several significant measures. In 2009 the authorities established a national framework for rural pensions, the Rural Pension Pilot Program (RPPP) and in 2011 a Pilot Social Pension Insurance for Urban Residents announced. In this process, it has articulated principles for a reformed urban pension system (indicated by 12 Chinese characters ) which are “broad coverage, protects at the basic level, is multi-layered, and sustainable” while the principles for the rural system (indicated by 12 characters ) are “broad coverage, protects at the basic level, flexible, and sustainable.” These principles underpin the commitments made at the 17th Party Congress towards a comprehensive and integrated social security system by 2020. Although substantial reforms of the pension system have been undertaken over the past two decades, some policymakers have suggested that additional reforms are needed to meet the needs of China’s rapidly changing economy and society. Issues such as legacy costs, system fragmentation and limited coverage have not been fully addressed. At the same time, many new challenges have emerged such as rapid urbanization, increased income inequality and urban-rural disparities, greater informalization of the labor force, changes in family structure, and the effects of increased globalization. This report has been prepared at the request of the Ministry of Finance to develop a medium term vision of a holistic framework that could be realized by 2040 for strengthening old age income protection in China which is consistent with the principles outlined in the 12 characters and design options towards achieving it. The main body of this report outlines this vision – summarizing the key features of a proposed medium-term pension system – while the annexes provide the deeper analysis and context which underpins the recommendations contained herein.

Download or read book China s Aging Population written by China Development Research Foundation and published by Taylor & Francis. This book was released on 2024-08-02 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a systematic study of the challenges of aging in China and of the measures being taken, planned, and still needed to cope with the challenges. It highlights that the number of people aged 65 or above is growing and that the growth will accelerate—from 176 million people representing 12.6% of the population in 2019 to 310 million representing 22.3% of the population by 2035, and it also highlights that the aging comes at a time when China’s economy is not yet fully developed and not yet fully balanced. The book outlines how China has already established an elderly care system and is beginning to meet the needs of the elderly for economic security, social services, and so on; discusses the need for enhancing and considerably extending the existing system; and proposes reform ideas and key policy options.

Download or read book How Can China Provide Income Security for Its Rapidly Aging Population written by and published by World Bank Publications. This book was released on 1996 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Assessing Chile s Pension System Challenges and Reform Options written by Samuel Pienknagura and published by International Monetary Fund. This book was released on 2021-09-10 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Chile’s pension system came under close scrutiny in recent years. This paper takes stock of the adequacy of the system and highlights its challenges. Chile’s defined contribution system was quite influential when introduced, and was taken as an example by other countries. However, it is now delivering low replacement rates relative to OECD peers, as its parameters did not adapt over time to changing demographics and global returns, while informality persists in the labor market. In the absence of reforms, the system’s inability to deliver adequate outcomes for a large share of participants will continue to magnify, as demographic trends and low global interest rates will continue to reduce replacement rates. In addition, recent legislation allowing for pension savings withdrawals to counter the effects from the COVID-19 pandemic, is projected to further reduce replacement rates and increase fiscal costs. A substantial improvement in replacement rates is feasible, via a reform that raises contribution rates and the retirement age, coupled with policies that increases workers’ contribution density.

Download or read book Population Aging and Pension Systems written by F. Desmond McCarthy and published by World Bank Publications. This book was released on with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book How Can China Provide Income Security for Its Rapidly Aging Population written by Estelle James and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: October 1996 If China implements a partially funded multipillar pension system, that reform must go hand-in-hand with reform of the financial sector and restructured investment procedures that emphasize the right mix of competition, diversification, and regulation. Otherwise, pension reform will ultimately fail. Friedman, James, Kane, and Queisser discuss key choices policymakers face about China's pension system in the face of a rapidly aging population. (Many developing countries face the same problem, but China's problems are exacerbated by the long-term effects of its one-child family planning policy.) They describe the problems the current pay-as-you-go system faces in the near and long term and simulate policy options for solving those problems. They find that simple design changes - such as reducing the generous benefit rate, moving toward price indexing rather than wage indexing, and raising the retirement age - are necessary but not sufficient conditions for making the pension system sustainable. Partial funding is necessary to avoid large increases in future contribution rates. They investigate the impact on the old-age system and economic growth of a multipillar system that includes a modest mandatory tax-financed basic benefit plus a mandatory fully-funded defined-contribution (individual account) scheme. Implementation of a partially funded multipillar pension system must go hand-in-hand with reform of the financial sector and restructured investment procedures that emphasize the right mix of competition, diversification, and regulation. Otherwise, China's pension reform will ultimately fail. This paper - a product of the Poverty and Human Resources Division, Policy Research Department - is part of a larger effort in the department to analyze the impact of pension systems and pension reform.

Download or read book Implicit Pension Debt Transition Cost Options and Impact of China s Pension Reform written by and published by World Bank Publications. This book was released on 2001 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: China's population is aging rapidly: the old age dependency ratio will rise from 11 percent in 1999 to 25 percent in 2030 and 36 percent in 2050. Currently, three workers support one retiree; without reform, the system dependency ratio will climb to 69 percent in 2030 and 79 percent in 2050. The pension system has been in deficit, with an implicit pension debt in 2000 as high as 71 percent of GDP. The lack of an effective sustainable pension systemn is a serious obstacle to Chinese economic reform.

Download or read book Aging Population and Pension System Reform in China written by Xin Yi and published by LAP Lambert Academic Publishing. This book was released on 2011 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis uses a computable Overlapping Generation (OLG) model to examine the Chinese pension reform. The research involves calibrating an OLG model for the Chinese economy and undertaking policy evaluations. Model calibration involves choosing a set of household and firm parameters to capture the key features of the Chinese economy and pension system. Policy evaluation involves using the calibrated model to compare economic variables under alterative pension policies. The major pension policy focus is a comparison of Pay-As-You-Go (PAYG) and full funded social security designs. The thesis examines the effect of pension reform on the economy from both economy-wide and inter-generational dimensions. Based on the simulation results the thesis argues for two conclusions. Firstly, China's economic output would increase if the pension reform occurred, as the capital stock under the full funded scheme is higher than under the PAYG scheme. Secondly, the thesis finds that the losers are the older generation at the time of the pension reform but that all other generations would benefit from the reform.

Download or read book Population Aging and Pension Systems written by F. Desmond McCarthy and published by World Bank Publications. This book was released on 1996 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: