China should step up the reform of its pension system by improving its sustainability, balancing its funding sources and narrowing gaps in benefits for people from different regions and sectors, former banking officials urged during the Boao Forum for Asia.
In 2024, the average monthly basic pension payment for urban and rural residents was about 240 yuan (US$33), “far from enough to cover basic living expenses” according to Guo Shuqing, former chairman of the China Banking and Insurance Regulatory Commission. He made the comments during a panel discussion on Tuesday.
“Could the government consider sustained and substantial increases in the basic pension for residents?” asked Guo, who currently serves as deputy director of the national legislature’s financial and economic affairs committee.
“The goal should be to reduce the urban-rural pension disparity from 3.4 times in 2021 to around 2.4 times or lower by 2030,” Guo added.
China’s pension system currently rests upon three main “pillars”, with most retirees relying on the first pillar, the basic pension fund.
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