Caixin OnlineOpinionEditorial Fulfilling the Pension Promise
12.05.2012 17:59

Fulfilling the Pension Promise

The government has pledged to provide a better safety net for all people. It must now follow through by fixing an indebted, fragmented social security system

A proposal to revamp China's pension scheme is bringing hopes of a stronger safety net. The government has launched a public consultation on a plan that will allow people to switch between three existing types of pension insurance. If approved, the flexibility will go some ways to addressing long-standing criticism of the current system.

China needs a social security system that is commensurate with its development. A good system ensures social changes keep pace with changes in the economy. It safeguards stability and is a necessary feature in any prosperous society.
The government's efforts over the past decade to improve social security have been commendable. Most recently at the 18th party congress, it pledged that all urban and rural residents should be covered by a social security system that is sustainable, fair and mobile. Given the current shortfalls, this is an ambitious goal.

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