The Notional and the Real in China’s Pension Reforms

The Notional and the Real in China’s Pension Reforms

This paper discusses the potential expansion of the role of the notional defined contribution (NDC) paradigm in the ongoing reforms of retirement provision in China. It finds that mature age life expectancy is remarkably uniform among formal sector...

Full description

Bibliographic Details
Main Authors: Lu, Bei, Piggott, John, Zheng, Bingwen
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
PENSION REFORM
NOTIONALLY DEFINED CONTRIBUTION
NOTIONAL DEFINED CONTRIBUTION
LIFE EXPECTANCY
Online Access:http://documents.worldbank.org/curated/en/863091556877462257/The-Notional-and-the-Real-in-China-s-Pension-Reforms
http://hdl.handle.net/10986/31645
id okr-10986-31645
recordtype oai_dc
spelling okr-10986-316452021-05-25T09:23:23Z The Notional and the Real in China’s Pension Reforms Lu, Bei Piggott, John Zheng, Bingwen PENSION REFORM NOTIONALLY DEFINED CONTRIBUTION NOTIONAL DEFINED CONTRIBUTION LIFE EXPECTANCY This paper discusses the potential expansion of the role of the notional defined contribution (NDC) paradigm in the ongoing reforms of retirement provision in China. It finds that mature age life expectancy is remarkably uniform among formal sector workers at the time of retirement, although greater heterogeneity does exist for Rural and Urban Residents Pension Scheme members. The implications of a stylized NDC structure are examined covering China’s major pension systems, calibrated to be actuarially neutral. Each system has a different contribution rate and retirement age, consistent with different life expectancies. A complementary social pension is also proposed. The paper concludes that an increased presence of the NDC paradigm has the potential to raise aggregate welfare. 2019-05-07T15:35:32Z 2019-05-07T15:35:32Z 2019-04 Working Paper http://documents.worldbank.org/curated/en/863091556877462257/The-Notional-and-the-Real-in-China-s-Pension-Reforms http://hdl.handle.net/10986/31645 English Social Protection and Jobs Discussion Paper,no. 1921; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper East Asia and Pacific China
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PENSION REFORM
NOTIONALLY DEFINED CONTRIBUTION
NOTIONAL DEFINED CONTRIBUTION
LIFE EXPECTANCY
spellingShingle PENSION REFORM
NOTIONALLY DEFINED CONTRIBUTION
NOTIONAL DEFINED CONTRIBUTION
LIFE EXPECTANCY
Lu, Bei
Piggott, John
Zheng, Bingwen
The Notional and the Real in China’s Pension Reforms
geographic_facet East Asia and Pacific
China
relation Social Protection and Jobs Discussion Paper,no. 1921;
description This paper discusses the potential expansion of the role of the notional defined contribution (NDC) paradigm in the ongoing reforms of retirement provision in China. It finds that mature age life expectancy is remarkably uniform among formal sector workers at the time of retirement, although greater heterogeneity does exist for Rural and Urban Residents Pension Scheme members. The implications of a stylized NDC structure are examined covering China’s major pension systems, calibrated to be actuarially neutral. Each system has a different contribution rate and retirement age, consistent with different life expectancies. A complementary social pension is also proposed. The paper concludes that an increased presence of the NDC paradigm has the potential to raise aggregate welfare.
format Working Paper
author Lu, Bei
Piggott, John
Zheng, Bingwen
author_facet Lu, Bei
Piggott, John
Zheng, Bingwen
author_sort Lu, Bei
title The Notional and the Real in China’s Pension Reforms
title_short The Notional and the Real in China’s Pension Reforms
title_full The Notional and the Real in China’s Pension Reforms
title_fullStr The Notional and the Real in China’s Pension Reforms
title_full_unstemmed The Notional and the Real in China’s Pension Reforms
title_sort notional and the real in china’s pension reforms
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/863091556877462257/The-Notional-and-the-Real-in-China-s-Pension-Reforms
http://hdl.handle.net/10986/31645
_version_ 1764474785404813312

Similar Items