China’s development of a multi-tier pension system

Tianhong Chen
John A. Turner

Volume 74 (2021), Issue 1

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China has made a number of major changes to its pension system in the period 2014–2020, and is in the process of establishing a multi-tier old-age pension system, consisting of programmes provided by the government, voluntary programmes provided by enterprises, and voluntary programmes established by individuals. Policy objectives are to reduce the fragmentation in its pension system; deal with population ageing; and diversify risks by involving the government, enterprises as well as individuals. This article shows that while China has a complex system for urban workers, the coverage provided by its multi-tier system is uneven, with the second and third tiers being in the early stages of development.

Old-age pensions
social security schemes
pension scheme
old-age benefit