Pension Sustainability in China: Fragmented Administration and Population Aging

Pension Sustainability in China: Fragmented Administration and Population Aging explores the impact of fragmentation and population aging on pension sustainability in China, using an OLG model to assess the impact of population aging and considering adjustment in retirement age to ensure long-term financial sustainability.

Format: Paperback / softback
Length: 128 pages
Publication date: 31 May 2023
Publisher: Taylor & Francis Ltd

Pension Sustainability in China: Fragmented Administration and Population Aging
Aims to investigate the impact of fragmentation and population aging on pension sustainability in China. The book demonstrates how pension sustainability is compromised by various adverse effects produced by fragmentation, such as the moral hazard caused by the disarticulated intergovernmental fiscal responsibility. An overlapping generations (OLG) model is updated with the latest demographic data and is used to assess the impact of population aging on pension sustainability. The book considers whether adjustment in retirement age can ensure long-term financial sustainability. It explores how, compared to the population aging, the issues stemming from the fragmentation pose a more insidious threat to pension sustainability in China.

The Chinese pension system is facing significant challenges due to the country's rapidly aging population and fragmented administration. This book aims to explore the impact of these factors on pension sustainability in China.

One of the main challenges facing the Chinese pension system is the moral hazard caused by the disarticulated intergovernmental fiscal responsibility. This refers to the uneven distribution of financial responsibilities across different levels of government, which can lead to fiscal imbalances and undermine the sustainability of the pension system.

Another challenge is the impact of population aging on pension sustainability. As the population continues to age, the number of retirees will increase, putting a strain on the pension system's finances. This is particularly problematic in China, where the population is rapidly aging due to the one-child policy and other demographic factors.

To address these challenges, the book proposes an overlapping generations (OLG) model to assess the impact of population aging on pension sustainability. The OLG model is a framework that considers the intergenerational transfer of resources and the impact of demographic changes on the economy.

The book also examines whether adjustment in retirement age can ensure long-term financial sustainability of the pension system. While some argue that raising the retirement age can help reduce the burden on the pension system, others argue that it may have unintended consequences, such as increased poverty and social unrest.

The book also explores how the issues stemming from fragmentation pose a more insidious threat to pension sustainability in China. Fragmentation refers to the uneven distribution of resources and services across different regions and provinces in China. This can lead to disparities in pension benefits and access to healthcare and other social services, which can undermine the social cohesion of the country.

In conclusion, Pension Sustainability in China: Fragmented Administration and Population Aging is a valuable contribution to the literature on pension sustainability in developing countries. The book provides a comprehensive analysis of the challenges facing the Chinese pension system and proposes solutions to address them. It is essential for policymakers and stakeholders to understand the impact of population aging and fragmentation on pension sustainability and take steps.

Weight: 453g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032022826