The Notional and the Real in China’s Pension Reforms
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...
| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/863091556877462257/The-Notional-and-the-Real-in-China-s-Pension-Reforms http://hdl.handle.net/10986/31645 |
| Summary: | 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. |
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