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Next Year, the Shortage in China’s Pension Account Will Reach 18 Trillion Yuan

A recently released research report "to resolve the mid to long-term risk to the nation’s account for asset liabilities” predicted that the gap between the amount in the Chinese pension account and the amount due to be paid out will reach 18.3 trillion yuan [~US$3 trillion] in 2013. The report notes that, due to the impact of China’s aging population, the  co-ordinated pension account will be a huge burden for the nation’s finances. Actions have been recommended to relieve the pressure, including delaying the retirement age; allocating state-owned shares; and reforming (the retirement policies) of government departments and institutions.

The study was a joint effort between the Bank of China research team, led by Cao Yuanzheng, the chief economist for the Bank of China, and the Fudan university research group, led by Ma Jun, the chief economist for the Greater China area of Deutsche Bank.

Source:Xinhua,June 14,2012