China pension surplus exceeds $700bn

21st July, 2019 11:55:58 printer

SHANGHAI: China's state pension fund surplus stood at more than 5 trillion yuan (S$987.23 billion) in the first half of 2019, a government official said as Beijing tries to allay fears that it will be unable to deal with the costs of a rapidly ageing population.

China is facing what experts are calling a "demographic time-bomb" as its elderly population grows and its workforce dwindles, partly as a result of a one-child policy in place for around four decades, report agencies.

After an official research report showed China's total pension pot could be "insolvent" as early as 2035, Chinese government officials have sought to reassure the public that their pensions will be guaranteed.

"Everyone should rest assured that we will be able to guarantee that basic pension funds are disbursed on time and in full, not only at present but over the long term," said You Jun, Vice Minister of Human Resources and Social Security, at a briefing on Friday.