The Notional and the Real in China’s Pension Reforms
| Autor: | Bingwen Zheng, Bei Lu, John Piggott |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Labour economics
Pension Stylized fact media_common.quotation_subject 05 social sciences Social pension 03 medical and health sciences 0302 clinical medicine 0502 economics and business Economics Life expectancy 030212 general & internal medicine 050207 economics Notional amount Cost of living Welfare health care economics and organizations Retirement age media_common |
| DOI: | 10.1596/31645 |
| Popis: | This paper discusses the potential expansion of the role of the notional defined contribution (NDC) paradigm in the ongoing reforms of retirement provision in China. It finds that mature age life expectancy is remarkably uniform among formal sector workers at the time of retirement, although greater heterogeneity does exist for Rural and Urban Residents Pension Scheme members. The implications of a stylized NDC structure are examined covering China’s major pension systems, calibrated to be actuarially neutral. Each system has a different contribution rate and retirement age, consistent with different life expectancies. A complementary social pension is also proposed. The paper concludes that an increased presence of the NDC paradigm has the potential to raise aggregate welfare. |
| Databáze: | OpenAIRE |
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