China's pension crisis

China faces the biggest pension crisis on the planet with its social security systems running out of money by 2035 and many provincial and business retirement funds already broke. Chinese Academy of Social Sciences released a study estimating that China’s main state-sponsored social security fund could be exhausted by 2035, or about the same year as actuaries for the U.S. Social Security Trust Fund estimate its fund will run dry. But the more immediate problem for China is that nearly half of China’s 31 provincial regions expect to report operating shortfalls in their basic pension funds by 2022, compared to six in 2015. Despite federal subsidies, the northeastern China rust belt province of Heilongjiang was forced in to begin delaying pension payments in July 2018. Only about 17.3 percent of Chinese were 60 years of age or older in 2017, compared to 21.8 percent in the U.S. But due to China’s population of 1.4 billion versus 326 million in the U.S.,...(Read Full Post)
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