Pension funds in China running out due to ageing population

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BEIJING: Thirteen pension funds in regions and administrative units around China have enough money to pay only less than one year's worth of pensions, local media reported yesterday, as China struggles with an ageing population and shortfalls in pension schemes.

Guangxi, Jiangxi, Hainan, Inner Mongolia, Hubei, Shaanxi, Tianjin, Hebei, Liaoning, Jilin, Qinghai, Heilongjiang and the Xinjiang Production and Construction Corps can all pay less than one year's worth of pensions to workers covered under the respective funds, the official Beijing News reported, citing last year's Social Security Development Annual Report. The total expenditure of China's urban workers' pension funds grew 23.4 per cent on year to 3.19 trillion yuan while total income grew only 19.5 per cent on year to 3.51 trillion yuan, the Beijing News said, citing the report.

At the end of last year, China had more than 230 million people over the age of 60.

The report added that by 2050, the ratio of pensioners to workers will be 1:1.3. - REUTERS