Current Social Welfare Conditions in China

China’s old-age pension scheme originates from the nation’s 1951 labor insurance regulation. It was primarily for people unable to participate in the workforce because of age or disability and provided for old-age, disability and survivor benefits. Prior to China’s 1978 reform and door-opening, employees of government and state enterprises were entitled to receive pension without paying into the system. Since 1978, the market economy has undergone rapid growth and at the same time the pension scheme has undergone rapid reform.

We will take a brief look at how the pension scheme was reformed and how the scheme is currently organized as a result of the reform. In this context we’ll examine how it is affecting people in reality. Based on surveys supported by Grants-in-Aid for Scientific Research from the Japanese Government conducted in two urban and three rural areas from 2008-2011 we’ll look first at the present living conditions of seniors comparing urban and rural settings as well as regional differences. Second, we’ll look at a survey of the pension system in four major cities with fluid populations and examine the issues between the system and actual reality for workers. Finally, we’ll suggest ideas for how existing issues could be resolved.