China boosts social security fund to combat aging crisis

China is increasing its social security fund to tackle the issues posed by an aging population. The National Social Security Fund (NSSF), currently worth 2.88 trillion yuan ($406 billion), will be expanded to assist more retirees.

Ding Xuedong, the fund’s party secretary, outlined plans to effectively respond to population aging and enhance the elderly care industry. With an estimated 300 million Chinese expected to retire within the next decade, equivalent to the entire US population, the urgency to strengthen the social security system is paramount.

China is already experiencing moderate aging, and the situation is projected to worsen, making the expansion of the strategic reserve fund crucial. The fund, established in 2000, serves as a financial safety net during peak aging periods.

The state-run Chinese Academy of Sciences has projected that China’s pension system could face financial difficulties by 2035, emphasising the need for proactive measures to safeguard the welfare of the elderly population.

Attribution: Reuters

Subediting: Y.Yasser