Primary Taiwanese news agency Central News Agency (CNA) recently reported that, according to a report that the IAC (The Insurance Association of China), issued, China’s pension fund’s financial gap has widened. In the next five to ten years, the IAC expects that the financial gap for the Chinese pension fund will reach RMB eight to ten trillion yuan (around US$1.2 trillion to $1.5 trillion), and it won’t stop there. In the past few years, the Chinese pension gap has been a major concern among China’s elderly and even among middle-aged people. After 40 years of the birth control policy, the Chinese society is now aging very quickly. Those who pay into Social security are decreasing while the number of those receiving pensions is on the rise. The current Chinese pension system depends on social security, employers and personal funds. However, the system is not mature and lacks a managed investment market that is deep enough.
Source: CNA, November 20, 2020