CHINA-INTERNAL: ECONOMY-PENSIONS

 Pension payments is becoming a problem for the Chinese authorities as lay-offs of workers increases. Presently the burden of supporting each person over 65 is now shared by more than seven workers. But, according to UN data that will drop to just two people in 35 years or, according to the World Bank even fewer than that. A low retirement age and a one-child policy in place for 35 years contributed to China’s demographic predicament. Beijing this year began allowing couples to have two children, but few believe the shift will significantly lift a sagging birthrate. The Chinese government has sought to assuage fears around retirement. “The government can promise pensions for its citizens,” Premier Li Keqiang told reporters in March, adding that China had a $50.3 billion pension surplus in 2015. The Chinese Academy of Social Sciences, the country’s chief think tank, predicts China’s pension surplus will turn into a deficit by 2023. By 2050, it predicts, the cumulative deficit will be $118 trillion barring significant policy changes.







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