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Significance
The reform aims to bolster the size and quality of the workforce and ensure the long-term sustainability of pension funds. The number of years formal workers must contribute to pensions will also increase.
Impacts
A higher official retirement age will enable firms to retain skilled workers longer, aiding workforce quality and cutting turnover costs.
Foreign asset managers can leverage pension product design experience to gain a foothold in China’s underdeveloped private pension sector.
Reforms to expand the employee contribution and voluntary aspects of the pension system will boost investment in domestic stock markets.
Keywords:
China,
AP,
INT,
International,
economy,
aid,
employment,
fiscal,
labour,
pensions,
population,
welfare,
finance
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2024
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