China vows to make key social security fund ‘bigger, stronger’ amid ageing population
- National Social Security Fund will seek to increase investment in the domestic capital market, while also boosting openness and transparency
Authorities have pledged to make China’s 2.88 trillion yuan (US$402 billion) social security fund “bigger and stronger”, allowing it to serve as a safety net for a rapidly-ageing population.
The pension fund would also increase investment in the domestic capital market, especially strategic sectors, National Council for Social Security Fund party secretary and vice chair Ding Xuedong said.
“[The National Social Security Fund is] a strategic reserve fund for social security needs during the peak period of population ageing, and is the ballast stone of the country’s social security system,” Ding said, in an article published by the Study Times, the Central Party School’s official newspaper, on Monday.
Introduced in 2000 in response to an ageing population, the fund has supported China’s welfare system, including pensions and work injuries, as well as medical, unemployment and maternity insurance.
As of 2023, China had nearly 297 million people aged 60 or above, accounting for 21.1 per cent of the national population.
And China has, according to Ding, entered a moderate ageing stage, and it is expected to enter a severe ageing stage around 2035 that is set to last for a long time.
