Social Policy, Society and Change POGO-8024

Social Policy, Society and ChangePOGO-8024

Week 6 : Ageing and retirement incomes

11OutlineWhat causes population ageing?Changes in life expectancyFertility change and structural ageingDependency ratiosWhat does population ageing mean for social policy?Challenges and issues2Population ageingDemographic transition refers to the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.Population ageing reflects people living longerDeclines in fertility mean that the age structure of the population changes, and share of children declinesRapid fertility change can mean that size of generations can change quicklyLife expectancy at birth ranges from 45 in Sierra Leone to over 80 in Singapore and Hong KongLife expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life. http://data.worldbank.org/indicator/SP.DYN.LE00.IN/countries/1W?display=default

4Life expectancy at birth has increased by 3 years in the Russian Federation and 32 years in China since 1960Life expectancy has increased steadily in many countriesIn other countries, trends in life expectancy have been far differentFertility rates range from around 1 in Macau to 7.5 in NigerFertility rates, selected countries, 2011Total fertility rate represents the number of children that would be born to a woman if she were to live to the end of her childbearing years and bear children in accordance with current age-specific fertility rates. http://data.worldbank.org/indicator/SP.DYN.TFRT.IN/countries/1W?display=default

8Fertility rates have fallen most in Latin America, Asia and parts of the Middle EastChange in fertility rates, 1960 to 2011For many countries, fertility rates are convergingPopulation ageing is a world-wide issueAs of 2010, 36 million elderly people aged 65 years and over accounted for 3.6% of Africas population, up from 3.3% ten years earlier. In 1980, 3.1% of the population was aged 65 and above, and there has been a steady increase during the last forty years. Population aging in Africa is expected to accelerate between 2010 and 2030, as more people reach age 65.Projections show that the elderly could account for 4.5% of the population by 2030 and nearly 10% of the population by 2050. In many countries in (North) Africa, the proportion of older persons will be close to that of industrialized countries by 2030 and 2050.

What does population ageing mean for social policy?Dependency ratiosIncome support for retirementHealth care costsLong-term careGender issuesDependency ratiosDependency ratios is the ratio of people who need support to those able to provide supportUsually calculated as number of children plus number of older people as $ of working age populationIf 10% of population are older people and 30% are children, then 60% are working age, so dependency ratio = (10+30)/60, or 66.6%.Do children and older people need the same support?Should we look at number of people in employment?Dependency ratios are projected to increase from around 2011Population 65 and over to population of working age, 1980 to 2050Real dependency depends on employment

Pension reformGoals of Public Pension ProvisionPrimary goals: The delivery of adequate, affordable, and sustainable pension benefits:Guaranteeing an adequate minimum income in retirement (anti-poverty objective)Facilitating income replacement (income maintenance objective) Secondary goals: To minimise negative impacts (e.g. labor market and savings)

Wide variation in spending on retirement pensions% of GDP, 2005

Pension spending will increase in most rich countries

Pension systems designStructure of pension systemsPension systems vary widely: in the way benefits are calculated, whether they are publicly or privately managed and the target level of benefits. The first tier includes redistributive components that are designed to ensure that pensioners achieve some absolute, minimum standard of living compared with the population as a whole. Second-tier programmes are defined as those with an insurance or savings role: these are designed to maintain a certain standard of living during retirement relative to the individuals earnings when in work. Structure of pension systemsNearly all rich countries have safety nets to prevent old-age poverty, usually called first-tier schemes. There are four generic types: social assistance; separate, targeted retirement income programmes; basic pensions; and minimum pensions within earnings-related plans. All are mandatory and publicly provided. The benefits of basic schemes are either flat rate, with the same amount paid to each retiree, or depend only on the number of years of work (but not on earnings). Entitlement does not vary with the level of other pension income. Ten OECD countries including New Zealand have a basic pension scheme that plays an important role in providing retirement incomes.

Structure of pension systemsTargeted plans pay a higher benefit to poorer pensioners and reduced or zero benefits to better-off retirees. There are three ways of targeting. First, benefits can be pension-income tested (where the value depends only on the level of pension income a retiree receives). Swedens guarantee pension is an example. Second, benefits can be broader-income tested (reducing payments if, for example, a retiree has income from savings) or third, broader means-tested (reducing the pension to take account of both income and assets). Australias age pension is an example of a means-tested scheme. There are 13 OECD countries where targeted retirement-income programmes are significant. Structure of pension systemsMinimum pensions like pension-income-tested, targeted plans aim to prevent pensions from falling below a minimum level. But the institutional set-up and eligibility conditions are different. Minimum pensions are defined here as those which form part of the rules of second-tier, earnings-related pension provision. Usually, retirees must have paid contributions for a minimum number of years in order to receive this benefit. Minimum credits in earnings-related schemes, such as those in Belgium and the United Kingdom, also belong to the first tier: pension entitlements for workers with low earnings are calculated as if the workers earnings had been higher.

The second tierThe second tier plays an insurance or savings role. It aims to ensure that retirees have an adequate replacement rate (retirement income relative to earnings before retirement), not just a poverty-preventing, absolute standard of living. Like the first tier, it is mandatory. However, there is a mix of public and private provision of these benefits. Among the 30 OECD countries in 2009, only Ireland and New Zealand do not have second-tier schemes, relying mainly and wholly on basic pensions for mandatory retirement-income provision.

The second tier19 OECD countries have public, defined-benefit (DB) plans, the most widespread type of second-tier pension. In DB schemes, the amount a pensioner will receive depends on the number of years of contributions made throughout the working life and on some measure of individual earnings from work. Defined-contribution (DC) plans are the second most common kind of second-tier pension. In these schemes, workers have individual accounts in which contributions are invested. The accumulated capital from contributions and investment returns is then usually converted into an income stream at retirement. These plans are typically managed privately, by financial-services companies, employer-run or industry-wide pension funds. Australia and Mexico have only DC schemes in the second tier. In other countries with DC pensions such as Hungary, Poland, and Sweden the DC schemes are a complement to public, earnings-related pension schemes.

The second tierFinally, some countries have earnings-related schemes that do not follow the traditional DB model. First, there are points systems: French occupational plans and the German, Norwegian and Slovak public schemes. Workers earn pension points based on their individual earnings for each year of contributions. At retirement, accumulated pension points are multiplied by a pension-point value to convert them into a regular payment. Italy, Poland and Sweden have notional-accounts schemes, a third variant of an earnings-related plan. Contributions are recorded and they earn a notional interest rate, linked to a macroeconomic variable. At retirement, the accumulated notional capital in each account is converted to a stream of pension payments using a formula based on life expectancy at the time of retirement.

Pension eligibility agesThe majority of OECD countries (21) have a standard pension eligibility age of 65 for men or are moving towards this age. Pension eligibility ages for women are currently sometimes lower, but they will generally be equalised gradually with those of men (Australia, Belgium, Hungary and the United Kingdom, for example). Iceland, Norway and the United States stand out as already having a standard pension age of 67, but Australia and Germany are moving towards 67 and the United Kingdom towards 68. At the other extreme, France, Hungary and the Slovak Republic are the only countries that have a normal retirement age of 61 or 62 (although legislation to change the pension age in France is currently under consideration). Just over half of OECD countries also still have special provisions for early retirement.

Pension reforms in OECD countriesOptions for ReformMain options are a sub-set of combination and changes in benefit type (DB/DC), funding (UF/FF) and administration (public/private):Parametric reformsNotional Defined Contribution (NDC) reformFull privatizationPublic pre-funding of DB or DCMulti-pillar pension reformEquity some comments and questionsThe assessment of equity in structures, outcomes and reforms is complex and depends on measurement approach and particularly resource concepts.Reforms to expand the role of private pensions can apparently reduce progressivity yet still significantly boost retirement incomes of the lowest paid (especially women).It is possible to overshoot some reforms to promote financial sustainability threaten to severely reduce adequacy of payments.Equity some comments and questionsSome issues should be addressed through other means? Raising pension ages could be argued to disadvantage lower earners who have lower life expectancies, but is the appropriate solution to maintain eligibility age or address disparities in health and life expectancy?Improving the relative incomes of older women could be addressed through special provisions to recognise time out of the labour force, but this may reinforce gender patterns of employment and care; is it more appropriate to facilitate higher labour force participation?Equity some comments and questionsWhat might the future bring? Many of the determinants of the future situation of older people have already been in the process of long-term changeIncreased employment rates of women could be expected to boost the future retirement incomes of these groups when they reach retirement ageBut inequality in market incomes of people of working age has widened in many countries since the mid-1970s due to widening wage dispersion, growth of lone parenthood and increasing polarisation of household incomes.These challenges mean that strong safety nets will continue to be required.Retirement incomes in the rest of the worldSocial pensionsSome features of social pensions are common to developed and developing countries. Social pensions are income transfers to older people with the aim of preventing or reducing old age poverty.These transfers come in different forms, including old age grants, old age allowances, and cash transfers. They are mostly tax-financed.

Social pensionsSocial pensions are in place in most developed countries and are present in a good proportion of middle-income countries, but only a handful of low-income countries have them (Barrientos 2006). In the main, low-income countries have younger populations, high incidence of multigenerational households, high poverty incidence, and limited public resources and delivery capacity [plus other pressing needs in say education and health]. In this policy environment, old age poverty and social pensions are less likely to become a policy priority. Explaining why some low-income countries have chosen to introduce social pensions is therefore important..

Directions for reform? 2001 ILO resolution There is no single right model for social security. It grows and evolves over time. The State has a priority role in the facilitation, promotion and extension of coverage of social security. It is not always necessary, nor even in some cases feasible, to have the same range of social security provisions for all categories of people , [but] priority should be given in the first instance to needs which are most pressing in the view of the groups concerned.In underdeveloped countries it seems obvious that the way to make social security more widely available is not by including all workers in a system that is mainly tailored to public sector workers and workers in industrial undertakings. Nevertheless, the institutions set up for such systems are often a precious asset for their beneficiaries and can be a powerful lever for extending protection(Filali Meknassi, 2006).Directions for reform some options Expand formal employment and social security compliance Have optional benefits alongside compulsory benefits.Define basic benefits in different ways for different groups and situations.Co-ordinate existing public and private schemes, sharing infrastructure and harmonising mechanisms.Make links with an integrated social development policy.Target vulnerable sub-groups (e.g. the very old).Encourage non-state participation.Reduce both community wide vulnerabilities and household level risks.Boost administrative and fiscal capacity.ConclusionsReform proposals need to build on existing systems and be sensitive to specific country context.NDC systems tend to have good incentives to continue employment, but so do systems with basic pension, and mandatory or quasi-mandatory pillars.Careful design of first pillar or of means of guaranteeing minimum incomes is important, and complexity should be avoided.Additional materialPension reform in ChinaCoverage of age pension insurance, 1989 to 2004

41As a result the total coverage contributors as a percentage of the total Chinese population has increased from around 5% to 12% of the population.Receipt of pensions among older population, 1990 to 2004

42Pension receipt has also grown from 10% of the older population in 1990 to 20% in 1995, Increased a bit in the last decade, but not as much.Ratio of contributors to recipients of retirement pensions, 1989 to 2004

43It is common to talk about the dependency ratio the number of pensioners for each worker. The complement of this is the support ratio- the number of contributors for each pensioner.The previous trends mean that the ratio of contributors to recipients has shifted over time. At the end of the 1980s there were roughly 5 contributors for every recipient. This ratio declined significantly over the 1990s presumably due to economic restructuring of SOEs, but since the late 1990s the ratio has stabilised at around 3 contributors to every recipient.Ratio of contributors to recipients, selected regions, 1999 and 2004

44The ratio of contributors to recipients varies widely across China. In fact the ratios are lowest (around 2 to 1) in Beijing and Shanghai, partly reflecting their past importance as centres of urban employment. Ratios of over 4 to 1 occur in Henan and Shandong. Guangdong has seen a significant increase in the support ratio in the last 5 years, presumably due to strong economic growth.Trends in real value of average annual pension, 1989 to 2004

45The real value of pensions in payment has more than doubled over the past 15 years.Trends in level of average pensions, 1989 to 2004

46However, expressing this as a percentage of GDP per capita or the average SOE wage shows the trends have been less strong. Pensions fell in the first half of the 1990s, rose in the second half and have fallen in recent years as a percentage of GDP per capita.The Chinese pension system in comparative perspectiveUnfortunately data on other pension systems outside OECD countries are less timely than available data for China.The World Bank provides data up to the mid-1990s, and most recent ILO data refer to period 1992-1996.There are a number of more recent studies of specific countries and areas, e.g. by Inter-American Development Bank, providing more up-to date data.47Pension spending as % of GDP, China and World regions, mid-1990s to 2003/2004

48Pensions as % of GDP per capita, China and World Regions, mid-1990s to 2004

49Contributors as % of working-age population, China and World regions, mid-1990s to 2004

50Contributors as % of working-age population, China and other Asian economies, mid-1990s to 2004

51Trends in coverage of social security, 1990 to 2000s% of urban (China, Mexico) or salaried workers

Social insurance taxes as % of labour costs, China and World regions, mid-1990s to 2004

53Level of cash transfers around 2000Transfers as share (%) of household disposable income

54Transfers received by urban households in China are above the OECD average, but there is an upward bias because the figures for other countries refer to all households.Distribution of cash transfers, selected countries, around 2000Share of lowest and highest quintiles

55Lower income countries tend to have less equally distributed transfer payments. This is a consequence of low coverage and a large informal and uncovered population.China may well have a more unequal distribution of transfers even than Vietnam, because the Chinese figures are restricted to the urban population.But pension transfers tend to be less equally distributed than other payments (social assistance, unemployment benefits and family assistance), and a high share of spending in China is on pensions, thus biasing the results in the other direction.However, even very unequal transfers can reduce poverty and inequality so long as they are not as unequal as market incomes.Also, so long as benefits received are only paid out of contributions made in the past, then the system may not be unfair. However, if there are subsidies from other taxpayers, this condition may not apply.Challenges and issuesRelatively low levels of spending, but currently low aged population and low coverage among the retiredAs a consequence, spending per person appears very high by international standards, but reflecting the fact that participation limited to urban workers, and to the relatively privileged among themRapid growth in both spending and coverage over past 10 years, but ratio of contributors to recipients has fallenRetirement ages relatively low, particularly with rapidly aging population, and contribution period is also lowEquity and efficiency arguments for extending social protection, and in the longer term to rural residentsAdditional materialChinas changing population structure, 1950 to 2050

555 million peopleChinas changing population structure, 1950 to 20501 315 million

Chinas changing population structure, 1950 to 2050

1 392 millionWhat is the demographic dividend?The demographic dividend refers to the period when the birth rate has fallen, but the share of the older population has not increased greatly, so that the ratio of workers to dependents is at its most favourable, facilitating higher workforce participation and potentially higher economic growth.Aging erodes China's "demographic dividend"

Parametric ReformsLeaving the benefit structure unchanged but adjust parametersCould potentially go a long way, but has shortfalls:Often not fully done because not time-consistent/credibleLabor market distortions on somewhat reduced and financial market effects smallDealing with aging long-term announced changes in system parameters which are politically not attractiveReform attempts in Austria, France, Spain, etc.NDC ReformMakes the underlying financial relationship explicit and transparent, but remains unfundedIntroduced in Latvia, Poland, Sweden and ItalyMany attractive features, including:Reduction in distortion of labor supply and retirement decisionsAllows easy harmonization between schemesEasy build-up of independent women rightsEasy way of dealing with increasing life expectancyBut areas of concern remain, including:Choice of notional interest rate, remaining life expectancy or minimum pension age .Political games such a crediting contributions not paid Administration of reserve fund

Public Pre-funding of DB or DCKeeps or adjusts benefits structure, and partially pre-funds for better coping with agingTwo main objectivesImproving inter-temporal budget position of governmentOne fund for better risk pooling and reduction in administrative costsPast experience in developing and developed countries not goodRecent changes and approaches in e.g. Canada, Ireland, New Zealand encouraging but too soon to tell.Pension reforms some examplesChanges in the number of years used in benefit calculation. Individual earnings are measured in different ways: measures include earnings in the last (few) year(s) of employment, earnings over a number of best years, or life-time earnings. In the past, the last few years of earnings were commonly used to calculate public pension benefits. Today, many countries have moved towards the use of life-time earnings.Changing the valorisation of past earnings. Pension benefits have also been made less generous through changes in ways in which past wages enter into the benefit calculation. In many public pension systems, past earnings are re-valued to take account of changes in living standards between the time pension rights accrued and the time they are claimed. Some countries have recently moved from earnings to price-valorisation or to a mix of wages and prices. Changes in valorisation can strongly influence benefit levels, since prices tend to rise more slowly than wages.

Pension reforms some examplesChanging indexation of pensions in payment. Some countries have moved from indexation to earnings towards full or partial indexation to prices. This means the purchasing power of pensions is preserved, but pensioners are not participating in increasing living standards enjoyed by workers. When poverty thresholds are set in relation to household income, price indexation leads to higher relative poverty rates among pensioners as the economy grows. Linking pensions to higher life expectancy. Several countries have changed benefit formulae to include a factor reflecting increases in life expectancy at retirement. Incorporating such a factor is particularly simple in the notional account systems that have been introduced in recent years in some countries. Explicit links between life expectancy and pension benefits have also been introduced in defined benefit systems. The impact of these measures has varied depending on the parameter chosen, but have generally lowered the amount of public pension benefits paid to current and future generations of retirees. Pension reforms changing retirement incentivesIncreasing pension age for women Australia, Austria, Belgium (private sector), Hungary, Portugal, Switzerland, United KingdomGeneral increases in retirement ages - Czech Republic, Greece, Japan, Korea, New Zealand, Sweden, USAAdjusted retirement incentives Australia, Austria, Belgium, Denmark, Finland, France, Germany, Italy, Portugal, Spain, Sweden, United KingdomSocial protectionAccording to the ILO (2003):Only about 20% of the worlds population have adequate social security coverageMore than half the worlds population have no coverage at allIn the least developed countries, less than 10% of the working population is covered by social securityIn middle-income countries, social security coverage generally ranges from 20% to 60%, and in industrialised countries it is close to 100%.Figures from the China Statistical Yearbook for 2004:Around 12% of the total Chinese population are covered by pension insurance (contributors plus recipients) and 45% of the urban workforce.69Chart117.942.423.262.418.263.122.863.620.563.818.864.818.566.524.270.427.171.118.671.211.376.716.879.723.681.38.181.423.182.723.984.619.984.721.186.327.98726.295.424.8101.624.8105.627.4119.728.3128.318129.68.9139.3

Standard dependency ratioEmployment-adjusted

Sheet1Standard dependency ratioEmployment-adjustedIceland17.942.4Norway23.262.4New Zealand18.263.1Denmark22.863.6Netherlands20.563.8Canada18.864.8United States18.566.5United Kingdom24.270.4Sweden27.171.1Australia18.671.2Korea11.376.7Ireland16.879.7Austria23.681.3Mexico8.181.4Finland23.182.7Portugal23.984.6Czech Republic19.984.7OECD21.186.3Japan27.987Germany26.295.4France24.8101.6Spain24.8105.6Greece27.4119.7Italy28.3128.3Poland18129.6Turkey8.9139.3

Chart55.06659905595.39302860945.81942541648.07038780938.30902883138.82231222369.06444902219.08310534449.06314205758.97968155119.925912740710.744128827611.112476435211.47236732511.999582130712.580315106

% of total population

1 updatedTable 1: An Overview of Social Protection Programmes in ChinaProgrammeExpenditureRevenueRecipientsContributorsRatio(million yuan)% GDP(million yuan)% GDP(million)(million)Recip./Contrib.19992004199920041999200419992004199920041999200419992004Old Age Insurance192,485350,2102.3452.559196,512425,8402.3993.11129.8441.0395.02122.500.310.33Occupational Injury1,5423,3300.0190.0242,0885,8300.0250.043--39.1268.45Maternity7131,8800.0090.0141,0753,2100.0130.023--29.343.84Health insurance*6,90786,2200.0840.6308,987114,0500.1100.8335.5615.0990.450.370.00Unemployment Insurance9,16021,1000.1120.15412,52029,1000.1530.2131.0198.52105.840.010.00Total Social Insurance210,807462,7402.5693.381221,181578,0302.7004.223----0.000Disaster Relief3,4054,8990.0410.036--------Social Welfare and Relief Funds4,85226,5290.0590.194--------Lowest Cost of Living Guarantee--------5.3236.07--thereof urban--------2.6622.05--thereof rural--------2.6614.02--Temporary relief funds--------18.1720.05--thereof urban--------1.572.85--thereof rural--------16.6017.20--Recipients of the 5 Guarantees--------3.043.94--Pensions for Handicapped and Bereaved Families5,46010,7780.0670.079--------Other2,3069,1820.0280.067--------Total Social Security and Welfare16,02356,3460.1950.412--------Memorandum:Subsidies to social security programmes32,5370.3970.000Price Subsidies38,3710.4680.000Expenditure on Retired in Administrative Departments36,0150.4400.000Public Health Expenditure43,8490.5350.000Source (1999): Ministry of Labour and Social Security, China Social Insurance Year Book, 2000 and China Statistical Yearbook, 2000.GDP 1999 CNY8,206,700Source (2004): China Statistical Yearbook, 2005, tables 8-8, 23-30, 23-37, 23-38, 23-39GDP 2004 CNY13,687,590

Figure 1

Figure 12.34546674320.01878513790.00868485460.08416720010.11161611230.04149048720.0591224210.06653100140.02809899072.55859504850.02432860720.01373506950.62991366630.15415423750.03579154550.19381790370.07874286120.0670826639

Old Age InsuranceOccupational InjuryMaternityHealth InsuranceUnemployment InsuranceDisaster ReliefSocial Welfare and Relief FundPensions for Handicapped and Bereaved FamiliesOtherin % of GDPSpending on Social Security in China, 1999 and 2004 (% of GDP)

2 updatedTable 2: Spending on Social Security in China, 1989 to 2004 (% of GDP)YearAge pensionsHealth insuranceOccupational injury insuranceMaternity InsuranceUnemployment insuranceTotal social insuranceSocial welfare and relief fundsDisaster reliefPensions for Handicapped and Bereaved FamiliesExpenditure on RetireesOtherTotal19890.70---0.010.700.060.080.090.050.020.9919900.81---0.010.810.070.070.090.050.021.1119910.80---0.010.800.060.100.080.050.021.1119921.21---0.021.210.050.060.070.050.021.4619931.360.000.000.000.031.390.050.040.060.040.021.6119941.410.010.000.000.031.450.040.040.050.040.021.6519951.450.010.000.000.031.500.040.050.050.040.021.7019961.520.020.010.010.041.590.040.060.050.020.021.7819971.680.050.010.010.051.800.050.050.050.020.031.9919981.930.070.010.010.072.090.050.070.050.020.032.3119992.350.080.020.010.112.570.060.040.070.020.032.7920002.360.140.020.010.142.670.070.030.070.030.052.9020012.390.250.020.010.162.820.090.040.070.030.043.1020022.700.390.020.010.183.300.130.030.060.040.093.6620032.660.560.020.010.173.420.190.050.080.040.073.8520042.560.630.020.010.153.380.190.040.080.040.073.79Source: Calculated from China Social Insurance Yearbook, 2000 and China Yearbook, 2000 and 2005, tables 3-1, 8-8, 23-39AbsolutePercentage of GDPAbsolutePercentage of GDPPension forExpenditure onSocial WelfareExpenses onPension forExpenditure onSocial WelfareExpenses onYearGrossBasicUnemploymentMedicalWorkMaternityBasicUnemploymentMedicalWorkMaternityYearTotalDisable andRetireesand ReliefDisasterOthersTotalDisable andRetireesand ReliefDisasterOthersDomesticTotalPensionInsuranceInsuranceInjuryInsuranceTotalPensionInsuranceInsuranceInjuryInsuranceBereaved FamiliesFundsReliefBereaved FamiliesFundsReliefIncomeInsuranceInsuranceInsuranceInsuranceRevenuesExpenses198949.6014.438.5610.8012.882.930.2930.0850.0510.0640.0760.017198916909.2120.9118.82.00.7150.7030.0120.0000.0000.000199055.0416.619.6012.0713.333.430.2970.0900.0520.0650.0720.018199018547.9151.9149.32.50.8190.8050.0140.0000.0000.000199167.3217.2110.3213.1822.514.100.3110.0800.0480.0610.1040.019199121617.8176.1173.13.00.8150.8010.0140.0000.0000.000199266.4518.4512.4014.3615.895.350.2490.0690.0470.0540.0600.020199226638.1327.1321.95.11.2281.2080.0190.0000.0000.000199375.2720.7814.0917.0115.407.990.2170.0600.0410.0490.0440.023199334634.4482.2470.69.31.30.40.51.3921.3590.0270.0040.0010.001199495.1424.7820.1220.5519.4210.270.2030.0530.0430.0440.0420.022199446759.4680.0661.114.22.90.90.81.4541.4140.0300.0060.0020.0021995115.4629.1122.7824.1927.2712.110.1970.0500.0390.0410.0470.021199558478.1877.1847.618.97.31.81.61.5001.4490.0320.0120.0030.0031996128.0332.7810.6728.9839.0616.540.1890.0480.0160.0430.0580.024199667884.61082.41031.927.316.23.73.31.5941.5200.0400.0240.0050.0051997142.1437.6213.5136.5734.5119.930.1910.0510.0180.0490.0460.027199774462.61339.21251.336.340.56.14.91.7981.6800.0490.0540.0080.0071998171.2640.3816.2435.2952.3227.030.2190.0520.0210.0450.0670.035199878345.21636.91511.656.153.39.06.82.0891.9290.0720.0680.0120.0091999179.8854.5719.6848.5234.0523.060.2190.0660.0240.0590.0410.028199982067.52108.11924.991.669.115.47.12.5692.3450.1120.0840.0190.0092000213.0359.7223.7259.7128.7341.150.2380.0670.0270.0670.0320.046200089468.12385.62115.5123.4124.513.88.32.6662.3650.1380.1390.0150.0092001266.6869.8630.2689.9935.1741.400.2740.0720.0310.0920.0360.043200197314.82748.02321.3156.6244.116.59.62.8242.3850.1610.2510.0170.0102002372.9760.0341.28141.6332.9397.100.3550.0570.0390.1350.0310.0922002105172.33471.52842.9186.6409.419.912.83.3012.7030.1770.3890.0190.0122003498.8299.1542.19217.6955.7184.080.4250.0840.0360.1850.0470.0722003117390.24016.43122.1199.8653.927.113.53.4212.6600.1700.5570.0230.0122004563.46107.7849.58265.2948.9991.820.4120.0790.0360.1940.0360.0672004136875.94627.43502.1211.0862.233.318.83.3812.5590.1540.6300.0240.014GDP% of GDPYearTotalRevenue1989153.616909.20.90811096921990186.818547.91.00707303791991225.021617.81.04067481431992377.426638.11.41685518111993526.134634.41.51892482621994742.046759.41.586941021519951006.058478.11.720346933319961252.467884.61.844940384119971458.274462.61.958238901119981623.178345.22.071714795519992211.882067.52.695157861620002644.589468.12.955806259420013101.997314.83.187489672720024048.7105172.33.84955084220034882.9117390.24.15954760120045780.3136875.94.2230233861Expenses1989120.916909.20.71471743190.90811096920.714717431981.68.162751990151.918547.90.81883393811.00707303790.8188339381117.311.733881991176.121617.80.81466430441.04067481430.8146643044169.716.973491992327.126638.11.22779327351.41685518111.2277932735252.825.275581993482.234634.41.3921993741.51892482621.392199374303.730.365541994680.046759.41.45415296181.58694102151.4541529618365.736.567581995877.158478.11.4999611821.72034693331.499961182516.851.6770319961082.467884.61.59443879761.84494038411.5944387976696.169.6102819971339.274462.61.79842336961.95823890111.7984233696831.683.162619981636.978345.22.08932582982.07171479552.0893258298791.179.111919992108.182067.52.56876013952.69515786162.56876013951009.8100.9780520002385.689468.12.66642445742.95580625942.66642445741327.5132.7505520012748.097314.82.82383316823.18748967272.82383316821622.8162.2767820023471.5105172.33.30077233233.8495508423.30077233232423.4242.3400320034016.4117390.23.42141083874.1595476013.42141083873313.8331.3820044627.4136875.93.380727374.22302338613.380727374493.4449.34Balance atthe Year-end198981.61990117.31991169.71992252.81993303.71994365.71995516.81996696.11997831.61998791.119991009.820001327.520011622.820022423.420033313.820044493.4(100 million yuan)

Figure 2

Figure 20.99262332931.10575788091.11173843781.45954986651.60952852661.65339957311.69821572011.78291798431.98793212432.30930061322.79365011032.90453167113.09787164953.65539979433.84633568553.7923850274

Spending on Social Insurance in China, 1989 to 2004 (% of GDP)

Figure 3

Figure 30.90811096920.71471743198.162751.00707303790.818833938111.733881.04067481430.814664304416.973491.41685518111.227793273525.275581.51892482621.39219937430.365541.58694102151.454152961836.567581.72034693331.49996118251.677031.84494038411.594438797669.610281.95823890111.798423369683.16262.07171479552.089325829879.11192.69515786162.5687601395100.978052.95580625942.6664244574132.750553.18748967272.8238331682162.276783.8495508423.3007723323242.340034.1595476013.4214108387331.384.22302338613.38072737449.34

&APage &PRevenue (left)Expenditure (left)Balance at Year-end (right axis)% of GDPin billion YuanTrends in retirement insurance revenue/expenditure and cumulative balance, 1989 to 2004

3 updatedTable 3: The urban old-age pension insurance system, 1989-1999A. Workers for whom contributions are paidYearMillions of workersCovered workers as per cent of total populationCovered workers as per cent of urban employmentSystemic dependency ratio: contributors per recipientRevenue as per cent of GDP*Surplus (deficit) as per cent of GDP*Average contribution as per cent of average SOE wageItem198948.24.333.475.40.90.214.820002001200220032004199052.04.630.525.41.00.215.1199156.54.932.375.21.00.215.4199277.76.643.534.61.40.216.3Economically Active Population (10 000 persons)7399274432753607607576823199380.16.843.854.41.50.117.8Total Number of Employed Persons (10 000 persons)7208573025737407443275200199484.97.145.544.11.50.117.4Number of Employed Persons by Urban and199587.47.245.893.91.60.219.3Rural Areas (10 000 persons)199687.67.243.963.71.70.221.3Urban Employed Persons2315123940247802563926476199786.7741.733.41.80.122.9Rural Employed Persons4893449085489604879348724199884.86.839.213.11.9-0.122.4Number of Staff and Workers (10 000 persons)1125910792105581049210576199995.07.642.403.22.40.024.2Number of Registered Unemployed Persons5956817708008272000104.58.245.133.32.50.222.8in Urban Areas (10 000 persons)2001108.08.545.123.42.60.220.6Registered Unemployment Rate in Urban Areas (%)3.13.64.04.34.22002111.38.744.913.33.00.322.12003116.59.045.423.33.10.5na2004122.59.446.273.23.10.6naB. Pensions and pensionerstable 9-2YearMillions of recipientsRecipients as per cent of populationRecipients as per cent of populationSpending as per cent of GDP*Average pension as per cent of GDP per capita*Average pension as per cent of average SOE wageAverage real pension (1999 yuan per year)average pension at current pricesConsumer Price Index (1985=100)average pension in real 1999 YuanYear60 years and over100.00.3033060358198519898.90.8-0.788.764.72,7371330.1160.20.48589626932737.4876789339198919909.70.8100.895.467.73,0881547.0165.20.50106157113087.50337397071990199110.90.910.80.885.364.33,0751592.8170.80.51804670913074.6550536821991199216.81.4-1.284.266.53,4741914.5181.70.5511070673473.83271749371992199318.41.6-1.487.672.44,0482558.5208.40.63208977864047.75651907981993199420.81.7-1.481.566.34,0533179.2258.60.78434940864053.34066894631994199522.41.919.51.478.367.24,1183782.0302.80.91841067644117.99608578511995199623.61.9-1.578.969.74,3994375.5327.90.99454049144399.47568474481996199725.32.1-1.782.073.24,8314939.3337.11.02244464664830.83771414691997199827.32.2-1.988.372.35,4655542.5334.41.01425538375464.64872410381998199928.62.4-2.398.975.56,4516451.5329.716451.45411029961999200030.22.523.22.494.569.96,6476673.6331.01.00394297856647.37590751392000200131.72.6-2.490.161.46,7926866.3333.31.01091901736792.17892479672001200233.52.8-2.796.261.27,8587879.9330.61.00272975437858.43973669072002200335.63.022.82.789.0na7,9698087.9334.61.01486199587969.48051990282003200437.83.223.52.681.1na8,0948536.3347.71.05459508648094.38064634362004Sources: China Social Insurance Year Book 2000, China Statistical Year Book 2000 and informationfrom MOLSS. The figures refer to the main urban pension system and do not include civil servants.Tables 3-1, 4-1, 4-15, 5-4, 23-37, 23-39*total Chinese GDPNumber of People Participated in Basic Pension InsurancePopulationtable 4-1table 23-37(10 000 persons)YearNumber ofTotalEmployeesEnterprisesNumber of RetireesEnterprises(including others)(including others)10 000 people1 mio peoplePart EmplRetireesTotal% of Pop198957104816.94816.9893.4893.419891127041127.0448.1690548.93354457.1025985.0665990559199061665200.75200.7965.3965.319901143331143.3352.0070139.65310161.6601145.3930286094199167405653.75653.71086.61086.619911158231158.2356.53657410.86575767.4023315.8194254164199294567774.77774.71681.51681.519921171711171.7177.74658816.81495394.5615418.0703878093199398488008.28008.21839.41839.419931185171185.1780.0816718.39444798.4761178.30902883131994105748494.18494.12079.42079.419941198501198.584.94141220.794105.7354128.82231222361995109798737.88737.82241.22241.219951211211211.2187.37792922.411584109.7895139.06444902211996111178758.48758.42358.32358.319961223891223.8987.58410523.583113111.1672189.08310534441997112048671.08671.02533.42533.419971236261236.2686.709725.3343112.0449.06314205751998112038475.88475.82727.32727.319981247611247.6184.75827527.27313112.0314058.97968155111999124859501.88859.12983.62863.819991257861257.8695.0181129.835976124.8540869.925912740720001361710447.59469.93169.93016.520001267431267.43104.47496531.699347136.17431210.744128827620011418310801.99733.03380.63171.320011276271276.27108.0188533.806353141.82520311.112476435220021473711128.89929.43607.83349.220021284531284.53111.28836.078147.36611.47236732520031550711646.510324.53860.23556.920031292271292.27116.46538.602155.06711.999582130720041635312250.310903.94102.63775.020041299881299.88122.50341.026163.52912.580315106table 4-15PopulationAged 60Yearand Over2004154,90220031532692000129977870Sampling size is 0.966 promille0.9821/0.9661.035201.0183299389in million pers2004160.354156.0784114053129.977875-4 Number of Employed Persons at the Year-end in Urban and Rural AreasYearTotalGDP perCapitaRegionSubtotalYearGrossPopulation(URBAN)DomesticProduct197840152951419783624.11980423611052519804517.81985498731280819858964.419895532914390198916909.211.27041500.3219906474917041199018547.911.43331622.2719916549117465199121617.811.58231866.4519926615217861199226638.111.71712273.4419936680818262199334634.411.85172922.3119946745518653199446759.411.9853901.4919956806519040199558478.112.11214828.0719966895019922199667884.612.23895546.6319976982020781199774462.612.36266023.2219987063721616199878345.212.47616279.6219997139422412199982067.512.57866524.3720007208523151200089468.112.67437059.0220017302523940200197314.812.76277624.94200273740247802002105172.312.84538187.61200374432256392003117390.212.92279084.03200475200264762004136875.912.998810529.893-1 Gross Domestic Productin 100 million Yuanin 100 million people23-39 Revenue, Expenses and Reserve of Social Insurance FundBasicBasicRATIORATIOSurplusRATIOYearTotalPensionYearTotalPensionRev/GDPSpen/GDP(deficit)Surp/GDPInsuranceInsuranceRevenueExpenses1989153.6146.71989120.9118.80.86785241170.702742885527.90.16510952621990186.8178.81990151.9149.30.96408650040.805138587129.50.15894791321991225.0215.71991176.1173.10.9978277160.800596730542.60.19723098561992377.4365.81992327.1321.91.37309342631.208473952743.90.16461947361993526.1503.51993482.2470.61.4538730281.358852181632.90.09502084631994742.0707.41994680.0661.11.51290328791.413812409946.30.09909087819951006.0950.11995877.1847.61.62462648411.4494463739102.40.175180110219961252.41171.819961082.41031.91.72611151871.5200338516139.90.206077667119971458.21337.919971339.21251.31.79674776331.680478522186.60.116269241219981623.11459.019981636.91511.61.86223750781.9294439225-52.7-0.067206414719992211.81965.119992108.11924.92.39451190522.345453727940.30.049058177320002644.52278.120002385.62115.52.54630253692.3645112616162.60.181791275320013101.92489.020012748.02321.32.55763830372.3853104564167.70.172327847420024048.73171.520023471.52842.93.01548933872.7030939884328.60.312395350320034882.93680.020034016.43122.13.13484510672.6595923662557.90.475252740520045780.34258.420044627.43502.13.11114004242.5585956093756.30.55254443315-27 Average Wage of Staff and Workers in State-owned Units by SectorAverage contribution per workerAverage contribution as % of average SOE wagerevenueNumber of workersAverageYearTotal1989146.74816.91990178.85200.71991215.75653.71992365.87774.71993503.58008.219786441994707.48494.119808031995950.18737.81985121319961171.88758.41989205519971337.98671.01990228419981459.08475.81991247719991965.19501.81992287820002278.110447.51993353220012489.010801.91994479720023171.511128.81995562520033680.011646.51996628020044258.412250.319976747in 100 mio Yin 10 0001998766819998543Revenue20009552198914674694816.9304.6514.8248050913200111178199017881785200.7343.8315.0540286037200212869199121570845653.7381.5415.4032215937in Yuan199236576607774.7470.4616.3467418679199350354028008.2628.7817.8024728428199470742458494.1832.8417.361646206199595005078737.81087.2919.32958404431996117176398758.41337.8721.30370668061997133790518671.01542.9722.8689863591998145897378475.81721.3322.44828924781999196511519501.82068.1524.20868496120002278128510447.52180.5522.828200017320012488960610801.92304.1920.61362481220023171460711128.82849.7822.144516153320033680000011646.53159.75020044258400012250.33476.160in 10000 Yin 10000Yuan per contributing employeeAverage Pension per retireeAverage pension as % of GDP per capitaAver pension as % of aver SOE wageNumber of workersExpensesAverage1989118.8893.41990149.3965.31991173.11086.61992321.91681.51993470.61839.41994661.12079.41995847.62241.219961031.92358.319971251.32533.419981511.62727.319991924.92983.620002115.53169.920012321.33380.620022842.93607.820033122.13860.220043502.14102.6in 100 mio Yin 10 000Average Pension per retireeNumber of retireesExpenses19891188282.0893.41330.1488.65679082264.7267664519901493363.0965.31547.0395.362008623967.733331498119911730714.01086.61592.8185.339213009764.30419589319923219145.01681.51914.4584.209632649266.520283540419934706303.01839.42558.5587.552011763272.439001186819946610902.02079.43179.2481.487648998766.275492106619958476087.02241.23782.0178.333773399667.2357612524199610318689.02358.34375.4678.885015332569.6728775353199712513280.02533.44939.2682.003780555873.2068202113199815116267.02727.35542.5588.262459504972.2815517521199919248543.02983.66451.4598.882383677875.5174307655200021154833.03169.96673.5994.539881475669.8658539318200123212601.03380.66866.3490.051126667161.4272932895200228429072.03607.87879.8996.24162428461.2315746874200331221000.03860.28087.9289.03454295320200435021000.04102.68536.2981.06730513840in 10 000 Yin 10 0002003AgePopulation (person)Percentage to Total Population (%)Sex RatioTotalMaleFemaleTotalMaleFemale(female=100)Total126049864340061709810051.0548.95104.260-46297734509284685.032.732.3121.22389658112744193369346.553.553119.664191311224059219530218.754.614.15111.6915-1910471654997497208.374.364110.6120-248059640027405696.793.413.3998.6725-299389246629472637.63.793.8198.6630-3412349761870616289.714.884.83100.3935-3912325261929613239.614.864.75100.9940-449146746740447277.413.813.6104.545-499431447753465617.493.783.7102.5650-548167941095405846.323.183.15101.2655-595747229401280714.422.232.18104.7460-644602323345226783.621.821.8102.9465-694171020974207373.291.651.64101.1470-743148415833156502.461.241.22101.1775-79193109033102771.470.70.7787.8980-849832413756950.750.320.4272.6485-893687133023570.270.10.1756.4390-9410263237030.080.030.0545.9895+197631340.0200.0146.881532692000Age GroupsPopulationPercentage to Total Population (%)Sex RatioTotalMaleFemaleTotalMaleFemale(Female=100)Total1242612226640275969602336257100.0051.5348.47106.300-46897837437648694313296805.553.032.52120.175-99015258748303208418493797.263.893.37115.4210-14125396633653447396005189410.095.264.83108.8115-1910303116552878170501529958.294.264.04105.4320-249457317447937766466354087.613.863.75102.7925-2911760226560230758573715079.464.854.62104.9830-34127314298653604566195384210.255.264.99105.5035-3910914729556141391530059048.784.524.27105.9240-448124294542243187389997586.543.403.14108.3245-498552104543939603415814426.883.543.35105.6750-546330420032804125305000755.092.642.45107.5555-594637037524061506223088693.731.941.80107.8660-644170384821674478200293703.361.741.61108.2165-693478046017549348172311122.801.411.39101.8570-742557414912436154131379952.061.001.0694.6675-7915928330717581187525191.280.580.7081.9980-847989158320386847852900.640.260.3966.9585-893030698105694119737570.240.090.1653.5590-947835942297585538360.060.020.0441.4895-99169756513731183830.010.0143.40100 and Over1787746351324235.00129977870UrbanPart% coverageEmployeesEmployees198914390143.94816.948.16905433.4739777623199017041170.415200.752.00701330.5187565284199117465174.655653.756.53657432.3713564271199217861178.617774.777.74658843.5286870836199318262182.628008.280.0816743.8515332384199418653186.538494.184.94141245.5376679355199519040190.48737.887.37792945.8917694328199619922199.228758.487.58410543.9635101897199720781207.818671.086.709741.7254703816199821616216.168475.884.75827539.2108970207199922412224.129501.895.0181142.3960869177200023151231.5110447.5104.47496545.1276251566200123940239.410801.9108.0188545.1206558062200224780247.811128.8111.28844.9104116223200325639256.3911646.5116.46545.4249385701200426476264.7612250.3122.50346.2694515788

Figure 4

Figure 448.1690548.93354452.0070139.65310156.53657410.86575777.74658816.81495380.0816718.39444784.94141220.79487.37792922.41158487.58410523.58311386.709725.334384.75827527.2731395.0181129.835976104.47496531.699347108.0188533.806353111.28836.078116.46538.602122.50341.026

ContributersRecipientsmillionsContributors and recipients of retirement pensions, 1989 to 2004

Figure 5

Figure 55.06659905595.39302860945.81942541648.07038780938.30902883138.82231222369.06444902219.08310534449.06314205758.97968155119.925912740710.744128827611.112476435211.47236732511.999582130712.580315106

% of total populationCoverage of age pension insurance, 1989 to 2004

Figure 6

Figure 6143.948.16905433.4739777623170.4152.00701330.5187565284174.6556.53657432.3713564271178.6177.74658843.5286870836182.6280.0816743.8515332384186.5384.94141245.5376679355190.487.37792945.8917694328199.2287.58410543.9635101897207.8186.709741.7254703816216.1684.75827539.2108970207224.1295.0181142.3960869177231.51104.47496545.1276251566239.4108.0188545.1206558062247.8111.28844.9104116223256.39116.46545.4249385701264.76122.50346.2694515788

&APage &PUrban Employees (left axis)Participating Employees (left)Coverage of urban employment (right)millions% of urban employmentUrban coverage of age pension insurance, 1989 to 2004

Figure 7

Figure 71019.523.223.541658597

% of populaton 60+Coverage of pensions among older population, 1990 to 2004

Figure 8

Figure 85.45.45.24.64.44.13.93.73.43.13.23.33.40609769243.32282336083.27434001523.2451125828

Ratio of contributors to recipients of retirement pensions, 1989 to 2004

Figure 11

Figure 112737.48767893393087.50337397073074.6550536823473.83271749374047.75651907984053.34066894634117.99608578514399.47568474484830.83771414695464.64872410386451.45411029966647.37590751396792.17892479677858.43973669077969.48051990288094.3806463436

1999 YuanTrends in real value of average annual pension, 1989 to 2004

Figure 12

Figure 1288.65679082264.7267664595.362008623967.733331498185.339213009764.30419589384.209632649266.520283540487.552011763272.439001186881.487648998766.275492106678.333773399667.235761252478.885015332569.672877535382.003780555873.206820211388.262459504972.281551752198.882383677875.517430765594.539881475669.865853931890.051126667161.427293289596.24162428461.231574687489.0345429532200381.06730513842004

% of GDP per capita% of SOE wageTrends in level of average pensions, 1989 to 2004

Figure 13

Figure 1314.8248050913198915.0540286037199015.4032215937199116.3467418679199217.8024728428199317.361646206199419.3295840443199521.3037066806199622.868986359199722.4482892478199824.208684961199922.8282000173200020.613624812200122.14451615332002

% of average SOE wageContributions for age pensions, 1989 to 2002

4 updatedTable 4: Indicators of provincial differences in age structure, retirement and receipt of pension subsidies, China, 1999 and 2004RegionShare of total populationShare of population 65 and overAge dependency ratioShare of Social Security subsidiesShare of retired or resigned from SOERatio of active contributors to recipients of pensions199920041999200419992004199920041999200419992004shareshareShare ofTotal10010010010011.211.91001001001003.22.9919992004social securBeijing1.011.151.361.4713.714.10.981.714.673.602.472.090.97029702971.4847752174subsidy perTianjin0.780.790.950.991314.23.022.452.552.672.581.903.87179487183.1066897838capitaHebei5.335.244.614.929.510.73.513.653.854.103.622.970.65853658540.69718774751999200419992004Shanxi2.572.572.162.139.69.83.414.292.653.293.643.041.3268482491.6731473264Henan4.613.310.52116402120.6283527234Inner Mong.1.91.831.461.628.19.92.813.151.841.353.722.891.47894736841.7161345699Shandong4.574.250.44211994420.4654860372Liaoning3.373.243.453.6210.612.314.059.858.617.162.72.304.16913946593.0357879123Guangdong3.726.210.86701208980.5293097476Jilin2.142.081.911.839.19.55.925.973.043.583.382.572.76635514022.8651047699Jilin3.382.572.76635514022.8344270124Heilongjiang3.062.942.172.367.38.611.97.285.247.013.092.563.88888888892.4783700283China3.22.99Shanghai1.191.342.152.401920.31.263.787.455.541.931.911.05882352942.8210324889Heilongjiang3.092.563.88888888892.448709759Jiangsu5.835.727.57.231414.71.893.416.514.193.413.200.32418524870.5971618085Liaoning2.72.304.16913946593.0026419265Zhejiang3.613.634.524.1613.313.11.021.923.281.923.74.830.28254847650.5295716722Sichuan2.592.300.67343976780.7217709814Anhui5.024.974.884.971112.23.253.643.082.993.532.900.64741035860.7325758893Beijing2.472.090.97029702971.5035057719Fujian2.682.702.822.7012.111.81.030.712.041.623.153.510.38432835820.2621706839Shanghai1.931.911.05882352942.8363387416Jiangxi3.43.302.993.1110.111.42.352.802.073.363.762.720.69117647060.8508626658Shandong7.177.068.087.6512.312.53.173.314.613.974.574.250.44211994420.4685272373Henan7.567.487.017.1510.611.53.944.734.324.404.613.310.52116402120.633058902Hubei4.794.634.494.4710.611.34.484.514.465.723.792.990.93528183720.9746962367Hunan5.275.155.525.3211.612.15.425.643.814.322.912.731.02846299811.0944798392Guangdong5.796.395.995.7312.311.85.023.285.024.973.726.210.86701208980.5134116366Guangxi3.793.763.963.7212.311.91.451.501.782.383.382.980.3825857520.3987371508Hainan0.610.630.530.5510.211.00.560.860.851.022.812.410.91803278691.3700612283Chongqing2.482.402.873.261316.93.22.472.412.302.631.931.29032258061.0264229639Sichuan6.896.717.526.9312.212.24.644.894.954.732.592.300.67343976780.7287331318Guizhou2.973.002.352.659.211.31.661.721.41.933.062.500.55892255890.5739413298Yunnan3.363.403.013.0810.411.12.252.512.022.752.572.220.66964285710.7379876604Tibet0.20.210.110.166.79.40.220.290.060.112.581.501.11.3890870245Shaanxi2.922.852.732.5710.710.62.623.782.442.972.822.600.8972602741.3258574222Gansu2.042.011.51.568.49.31.62.981.491.953.412.640.78431372551.4814896567Qinghai0.410.410.290.298.18.31.470.910.420.462.912.553.58536585372.195390009Ningxia0.440.450.260.306.78.30.570.430.430.513.623.111.29545454550.9502065302Xinjiang1.421.510.871.106.98.71.361.571.253.142.932.380.95774647891.0391050312Source (1999): Calculated from China Statistical Year Book, 2000, Tables 4-7, 21-56 and 8-20.Source (2004): Calculated from China Statistical Year Book, 2005, Tables 4-9, 8-15 and LSS Yearbook 2005, Tables 11-5, 11-29SOE employed retired, resigned and terminated in 2004Ratio of Contributors to Recipient of pension in 2004Expenditure on Subsidies to Soc Sec Progr 2004Social SecsocCYB 4-9expendsecRegionGrosssharesubsPopulationAge 0-14Age 15-64Age 65DependencyChildrenOld Peopleperper(person)and OverRatioDependencyDependencycapitacapRatioRatioLSS 11-15LSS YB 2005, table 11,28LSS YB 2005, table 11,29CYB 8-15ContrRecipRatioContrRecipRatioNational Total125306524186690389710730338.6326.7611.872399773612485.42983.64.184676230112250.34102.62.9913288419Soc Sec Sub115.9442763667Beijing14213141511217158126.7112.6214.10863191274.376.23.5997375328311.1148.62.09226616per capita132.9563234698Tianjin986812947510106531.4017.2314.18639727195.2102.91.9032521317.3442295469Hebei660781153149270527734.1123.4010.71983005511.41722.97485292Henan6.6635124825117.6318929278Shanxi32352685223218228239.3429.519.83789443283.493.33.04570427Shandong4.936354859118.0020660268Inner Mongolia23233397617520173632.6122.709.91324621236.8822.89418242Guangdong5.6131882285131.8422141119Liaoning41100571531497388830.4918.1412.341717306767.2333.82.301308715Jilin30.0583399629130.0583399629Jilin26397366720762196827.1417.669.48859540315.9123.12.57793450China13.538979258125.9679117102Heilongjiang37241541329297253127.1118.488.641682847530.8207.32.56967071Heilongjiang25.9679117102130.0786133397Shanghai16702146912661257231.9211.6020.311330180505.6265.31.91502373Liaoning31.842214111916.2765059824Jiangsu722951180352739775337.0822.3814.701006599925.3288.83.20453760Sichuan7.654188108715.5936036075Zhejiang45682713134082446934.0420.9213.11460140735.5152.44.83255527Beijing15.944276366717.7325289652Anhui625751357543670533043.2931.0912.21718416345.1118.82.90483863Shanghai30.078613339712.7637159305Fujian34048656024591289738.4626.6711.78389260293.883.73.519409918.9738705327Jiangxi41524896329229333342.0730.6711.40806222271.899.92.7237263114.936354859Shandong890721525665608820935.7723.2512.51951939986.5232.24.2543969116.6635124825Henan943722003366664767541.5630.0511.511056055599.9181.13.31628849110.2451204922Hubei585101127642442479237.8626.5711.291373007585.1195.42.99599442111.5222090681Hunan650411205547274571237.5825.5012.081036152506.3185.42.7374941615.6131882285Guangdong776451952851973614449.3937.5711.8211923011368.4220.46.2143583614.203636517Guangxi47408993533475399741.6229.6811.94570153209.170.22.98199286114.4729661445Hainan79161892542959545.8134.8510.9624417484.835.22.41114568110.7219912938Chongqing30553637720678349847.7530.8416.9255264318796.81.9332758917.6541881087Sichuan849191666660815743839.6327.4012.231134134465.3202.72.3064998616.0629698253Guizhou37780964025293284749.3738.1111.25462644124.8502.5022905917.7968398876Yunnan42720960129818330043.2732.2011.07659180175.979.42.22333081114.7606221548Tibet2636653181316945.3836.039.35263634.531.5038909113.9407861862Shaanxi36022713526131275637.8527.3110.55713319266.8102.52.60502175115.6104923452Gansu25409561118118167940.2430.979.27467561141.153.52.64396647123.2050642624Qinghai52131216369130741.2632.948.3211000042.116.52.55120968110.0877781703Ningxia56621462387932145.9737.708.2812300447.315.23.1157117111.0445444915Xinjiang18880416713531118239.5330.798.74754610207.587.32.3820852131Total419.708356998810 000 YuanAver13.538979258RegionTotal PopulationShare(year-end)(10 000 persons)National Total129988100Beijing14931.1485675601Tianjin10240.7877650245Hebei68095.2381758316Shanxi33352.565621442Inner Mongolia23841.8340154476Liaoning42173.2441456134Jilin27092.0840385266Heilongjiang38172.9364249008Shanghai17421.3401237037Jiangsu74335.7182201434Zhejiang47203.6311044096Anhui64614.9704588116Fujian35112.7010185556Jiangxi42843.2956888328Shandong91807.062190356Henan97177.4753054128Hubei60164.6281195187Hunan66985.1527833338Guangdong83046.3882819953Guangxi48893.7611164107Hainan8180.6292888574Chongqing31222.4017601625Sichuan87256.7121580454Guizhou39043.0033541558Yunnan44153.3964673662Tibet2740.2107886882Shaanxi37052.8502631012Gansu26192.0148013663Qinghai5390.4146536603Ningxia5880.4523494476Xinjiang19631.5101393975

Figure 9

Figure 94.613.31253451134.574.24849267873.726.20871143383.382.56620633633.22.98598449763.092.56054027982.72.29838226482.592.29551060682.472.09353970391.931.9057670562

19992004Ratio of contributors to recipients, selected regions, 1999 and 2004

Sheet110-6 Basic Condition of Urban Households (2004)ItemNational(Grouped by Percentile of Households)LowestLowLower MiddleMiddleUpper MiddleHighHighestIncomePoorIncomeIncomeIncomeIncomeIncomeIncomeHouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholds(first(first five(second(second(third(fourth(ninth(tenthdecile)percent)decile)quintile)quintile)quintile)decile)decile)Number of Households Surveyed(household)5043050602524505510124101081009450124977Proportion(%)100.0010.035.0010.0220.0820.0420.029.949.87Average Household Size(person)2.983.363.423.243.102.992.842.742.65Average Number of Employed Persons per Household(person)1.561.361.271.521.571.631.581.601.60Proportion of Employment per Household(%)52.3540.4837.1346.9150.6554.5255.6358.3960.38Number of Dependents per Employee(including the employee himself or herself)(person)1.912.472.692.131.971.831.801.711.66Per Capita Annual Income(yuan)10128.513084.832531.464697.626423.898746.6511870.7916156.0227506.23Per Capita Disposable Income(yuan)9421.612862.392312.504429.056024.108166.5411050.8914970.9125377.17Per Capita Annual Consumption Expenditure(yuan)7182.102855.152441.123942.235096.156498.368345.7010749.3516841.82

Figure 10----share of social sec subsidy / share of population

Figure 10----0.52116402120.62835272340.44211994420.46548603720.86701208980.52930974762.76635514022.83442701243.88888888892.4487097594.16913946593.00264192650.67343976780.72177098140.97029702971.50350577191.05882352942.8363387416

19992004Share of social security subsidies per capita, selected regions, 1999 and 2004

Sheet2

5a updatedTable 5: Urban household income trends and composition10-5 Basic Conditions of Urban HouseholdsA. Average disposable income by sourceItem199019952000%2003%2004%Yearper cap annual disposeable incomeConsumer Price Index (1985=100)per cap annual disp inc in 1999 YuanPer cent distribution1985199019951998199920002001200220032004Number of Households Surveyed(household)3566035520422204802850430growthWages and other Salaries857779757371.270.770.6Average Household Size(person)3.503.233.133.012.98rateaverageNet Business Income212333.94.54.9Average Number of Employed Persons Per1.981.871.681.581.5619851000.303306036Property income112222.01.51.6Transfers132017192122.923.322.9Household(persons)19891373.9160.20.4858962692827.5582416542Total100100100100100100100100Proportion of Employment per Household(%)56.5757.8953.6752.4952.3519901510.2165.20.5010615713014.00084821116.594Number of Dependents per Employee19911700.6170.80.5180467093282.71557459128.916Annual Total in 1999 yuan2 438301446635349585462556786768283488934(including the employee himself or herself) (person)1.771.731.861.911.9119922026.6181.70.5511070673677.325371695912.021Annual real growth rate, %*.4.39.24.79.46.98.513.28.77.0Per Capita Annual Income(yuan)1516.214279.026295.919061.2210128.5119932577.4208.40.6320897794077.585314031810.885Income of Wages and Salaries1149.703390.2179.234480.5071.176410.2270.747152.7670.6219943496.2258.60.7843494094457.45220163739.316B. Urban households disposable incomes by quintile and sourceNet Business Income22.5072.621.70246.243.91403.824.46493.874.8819954283.0302.80.9184106764663.49108511454.6229.152Per cent distributionIncome from Porperties15.6090.432.11128.382.04134.981.49161.151.5919964838.9327.90.9945404914865.4630392524.331QuintileIncome from Transfer328.41725.7616.961440.7822.882112.2023.312320.7322.9119975160.3337.11.0224446475047.02138657683.732LowMedium lowMiddleMedium highHighAverageDisposable Income1510.164282.95100.096279.9899.758472.2093.509421.6193.0219985425.1334.41.0142553845348.85008803665.9804.681SOE income505761645859Per Capita Annual Consumption Expenditures (yuan)1278.893537.574998.006510.947182.1019995854.0329.715854.029.444COE income1296536Food693.771771.991971.322416.922709.6020006280.03311.0039429786255.3353503316.855Other employee income334344Clothing170.90479.20500.46637.72686.7920016859.6333.31.0109190176785.50891282728.476Other work income965445Household Appliances and Service108.45263.36374.49410.34407.3720027702.8330.61.0027297547681.830492485813.209Business income433233Health Care and Medical Services25.67110.11318.07475.98528.1520038472.2334.61.0148619968348.13012349718.674Property income222232Transport and Communications40.51183.22426.95721.12843.6220049421.6347.71.0545950868933.8553963267.016Transfers202019202621Education, Cultural and Recreation Services112.26331.01669.58934.381032.80Pensions161615161816Housing60.86283.76565.29699.38733.53Private transfers444485Miscellaneous Goods and Services66.57114.92171.83215.10240.24Total100100100100100100Composition of Per Capita Annual ConsumptionExpenditures(%)Total as per cent of average income for urban households527594118177100Food54.2550.0939.4437.1237.73Clothing13.3613.5510.019.799.56Total as per cent of average income for urban households in 2004376183113206100Household Appliances and Service10.147.447.496.305.67Health Care and Medical Services2.013.116.367.317.35Pension income distribution437388114163100by income groupTransport and Communications1.205.188.5411.0811.75Education, Cultural and Recreation Services11.129.3613.4014.3514.38Housing6.988.0211.3110.7410.21* Average growth rates for the periods between indicated years. Yuan amounts deflated by the consumer price index.Miscellaneous Goods and Services0.943.253.443.303.34Source: China Statistical Yearbook, various years, Tables 10-4, 10-5, 10-6 and 10-14. The data are derived from official household budget surveys using partly different definitions in urban and rural areas. The urban surveys only count monetary incomes ana) Data from the table to 10-17 are obtained from the sample survey on income and expenditures of urban households.b) Since 2002, the objects of urban households survey are the permanent residents of city districts and county towns. The relative data in the chapter are1985calculated according to the new standard, and historical data have been adjusted accordingly.19892827.558241654219903014.000848211119913282.715574591219923677.325371695910-2 Per Capita Annual Income and Engle Coefficient of Urban and Rural Households19934077.5853140318Per Capita Annual Net Income of Rural HouseholdsPer Capita Annual Disposable Income of Urban Households19944457.452201637319954663.491085114519964865.463039252Year19975047.0213865768Value (yuan)IndexValue (yuan)Index19985348.850088036619995854.021978133.6100.0343.4100.020006255.3353503311980191.3139.0477.6127.020016785.508912827210-6 Basic Condition of Urban Households (2004)1985397.6268.9739.1160.420027681.83049248581989601.5305.71373.9182.520038348.1301234971ItemNational(Grouped by Percentile of Households)1990686.3311.21510.2198.120048933.855396326LowestLowLower MiddleMiddleUpper MiddleHighHighestIncomePoorIncomeIncomeIncomeIncomeIncomeIncome1991708.6317.41700.6212.4HouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholds1992784.0336.22026.6232.9(first(first five(second(second(third(fourth(ninth(tenth1993921.6346.92577.4255.1decile)percent)decile)quintile)quintile)quintile)decile)decile)19941221.0364.43496.2276.819951577.7383.74283.0290.3Number of Households Surveyed(household)5043050602524505510124101081009450124977Proportion(%)100.0010.035.0010.0220.0820.0420.029.949.8719961926.1418.24838.9301.6Average Household Size(person)2.983.363.423.243.12.992.842.742.6519972090.1437.45160.3311.9Average Number of Employed Persons per Household(person)1.561.361.271.521.571.631.581.61.619982162.0456.25425.1329.9Proportion of Employment per Household(%)52.3540.4837.1346.9150.6554.5255.6358.3960.3819992210.3473.55854.0360.6Number of Dependents per Employee20002253.4483.56280.0383.7(including the employee himself or herself)(person)1.912.472.692.131.971.831.801.711.66Per Capita Annual Income(yuan)10128.513084.832531.464697.626423.898746.6511870.7916156.0227506.2320012366.4503.86859.6416.3Per Capita Disposable Income(yuan)9421.612862.392312.54429.056024.18166.5411050.8914970.9125377.1720022475.6528.07702.8472.1Per Capita Annual Consumption Expenditure(yuan)7182.12855.152441.123942.235096.156498.368345.710749.3516841.8220032622.2550.78472.2514.620042936.4588.19421.6554.2LowMed LowMiddleMed HighHighAverageAnnual Disp Urban Inc3645.726024.18166.5411050.8920174.049812.258in % of aver inc37.261.483.2112.6205.6

5b updatedTable 5: Urban household income trends and composition10-5 Basic Conditions of Urban HouseholdsA. Average disposable income by sourceItem199019952000%2003%2004%Yearper cap annual disposeable incomeConsumer Price Index (1985=100)per cap annual disp inc in 1999 YuanPer cent distribution198519901995200020032004Number of Households Surveyed(household)3566035520422204802850430growthWages and other Salaries85777971.270.770.6Average Household Size(person)3.503.233.133.012.98rateaverageNet Business Income2123.94.54.9Average Number of Employed Persons Per1.981.871.681.581.5619851000.303306036Property income1122.01.51.6Transfers13201722.923.322.9Household(persons)19891373.9160.20.4858962692827.5582416542Total100100100100100100Proportion of Employment per Household(%)56.5757.8953.6752.4952.3519901510.2165.20.5010615713014.00084821116.594Number of Dependents per Employee19911700.6170.80.5180467093282.71557459128.916Annual Total in 1999 yuan2 43830144663625583488934(including the employee himself or herself) (person)1.771.731.861.911.9119922026.6181.70.5511070673677.325371695912.021Annual real growth rate, %*.4.39.26.98.77.0Per Capita Annual Income(yuan)1516.214279.026295.919061.2210128.5119932577.4208.40.6320897794077.585314031810.885Income of Wages and Salaries1149.703390.2179.234480.5071.176410.2270.747152.7670.6219943496.2258.60.7843494094457.45220163739.316B. Urban households disposable incomes by quintile and sourceNet Business Income22.5072.621.70246.243.91403.824.46493.874.8819954283.0302.80.9184106764663.49108511454.6229.152Per cent distributionIncome from Porperties15.6090.432.11128.382.04134.981.49161.151.5919964838.9327.90.9945404914865.4630392524.331QuintileIncome from Transfer328.41725.7616.961440.7822.882112.2023.312320.7322.9119975160.3337.11.0224446475047.02138657683.732LowMedium lowMiddleMedium highHighAverageDisposable Income1510.164282.95100.096279.9899.758472.2093.509421.6193.0219985425.1334.41.0142553845348.85008803665.9804.681SOE income505761645859Per Capita Annual Consumption Expenditures (yuan)1278.893537.574998.006510.947182.1019995854.0329.715854.029.444COE income1296536Food693.771771.991971.322416.922709.6020006280.03311.0039429786255.3353503316.855Other employee income334344Clothing170.90479.20500.46637.72686.7920016859.6333.31.0109190176785.50891282728.476Other work income965445Household Appliances and Service108.45263.36374.49410.34407.3720027702.8330.61.0027297547681.830492485813.209Business income433233Health Care and Medical Services25.67110.11318.07475.98528.1520038472.2334.61.0148619968348.13012349718.674Property income222232Transport and Communications40.51183.22426.95721.12843.6220049421.6347.71.0545950868933.8553963267.016Transfers202019202621Education, Cultural and Recreation Services112.26331.01669.58934.381032.80Pensions161615161816Housing60.86283.76565.29699.38733.53Private transfers444485Miscellaneous Goods and Services66.57114.92171.83215.10240.24Total100100100100100100Composition of Per Capita Annual ConsumptionExpenditures(%)Total as per cent of average income for urban households527594118177100Food54.2550.0939.4437.1237.73Clothing13.3613.5510.019.799.56Total as per cent of average income for urban households in 2004376183113206100Household Appliances and Service10.147.447.496.305.67Health Care and Medical Services2.013.116.367.317.35Pension income distribution437388114163100by income groupTransport and Communications1.205.188.5411.0811.75Education, Cultural and Recreation Services11.129.3613.4014.3514.38* Average growth rates for the periods between indicated years. Yuan amounts deflated by the consumer price index.Housing6.988.0211.3110.7410.21Miscellaneous Goods and Services0.943.253.443.303.34Source: China Statistical Yearbook, various years, Tables 10-4, 10-5, 10-6 and 10-14. The data are derived from official household budget surveys using partly different definitions in urban and rural areas. The urban surveys only count monetary incomes ana) Data from the table to 10-17 are obtained from the sample survey on income and expenditures of urban households.China Statistical Yearbook 2005, tables 10-2, 10-5, 10-6b) Since 2002, the objects of urban households survey are the permanent residents of city districts and county towns. The relative data in the chapter are1985calculated according to the new standard, and historical data have been adjusted accordingly.19892827.558241654219903014.000848211119913282.715574591210-2 Per Capita Annual Income and Engle Coefficient of Urban and Rural Households19923677.3253716959Per Capita Annual Net Income of Rural HouseholdsPer Capita Annual Disposable Income of Urban Households19934077.585314031819944457.452201637319954663.4910851145Year19964865.463039252Value (yuan)IndexValue (yuan)Index19975047.021386576819985348.85008803661978133.6100.0343.4100.019995854.021980191.3139.0477.6127.020006255.3353503311985397.6268.9739.1160.420016785.508912827210-6 Basic Condition of Urban Households (2004)1989601.5305.71373.9182.520027681.83049248581990686.3311.21510.2198.120038348.1301234971ItemNational(Grouped by Percentile of Households)20048933.855396326LowestLowLower MiddleMiddleUpper MiddleHighHighest1991708.6317.41700.6212.4IncomePoorIncomeIncomeIncomeIncomeIncomeIncome1992784.0336.22026.6232.9HouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholdsHouseholds1993921.6346.92577.4255.1(first(first five(second(second(third(fourth(ninth(tenth19941221.0364.43496.2276.8decile)percent)decile)quintile)quintile)quintile)decile)decile)19951577.7383.74283.0290.3Number of Households Surveyed(household)504305060252450551012410108100945012497719961926.1418.24838.9301.6Proportion(%)100.0010.035.0010.0220.0820.0420.029.949.8719972090.1437.45160.3311.9Average Household Size(person)2.983.363.423.243.12.992.842.742.6519982162.0456.25425.1329.9Average Number of Employed Persons per Household(person)1.561.361.271.521.571.631.581.61.619992210.3473.55854.0360.6Proportion of Employment per Household(%)52.3540.4837.1346.9150.6554.5255.6358.3960.3820002253.4483.56280.0383.7Number of Dependents per Employee(including the employee himself or herself)(person)1.912.472.692.131.971.831.801.711.6620012366.4503.86859.6416.3Per Capita Annual Income(yuan)10128.513084.832531.464697.626423.898746.6511870.7916156.0227506.2320022475.6528.07702.8472.1Per Capita Disposable Income(yuan)9421.612862.392312.54429.056024.18166.5411050.8914970.9125377.1720032622.2550.78472.2514.6Per Capita Annual Consumption Expenditure(yuan)7182.12855.152441.123942.235096.156498.368345.710749.3516841.8220042936.4588.19421.6554.2LowMed LowMiddleMed HighHighAverageAnnual Disp Urban Inc3645.726024.18166.5411050.8920174.049812.258Annual Income3891.2256423.898746.6511870.7921831.12510552.736in % of aver inc37.261.483.2112.6205.6in % of aver inc36.960.982.9112.5206.9

Figure 141999EqualitySum%IncomeSum%0000000202010020525210.07751937984040200407512724.61240310086060300609422142.829457364380804008011833965.69767441861001005001001775161002004EqualitySum%IncomeSum%000000020201002037377.4404020040619819.66060300608318136.280804008011329458.8100100500100206500100500

Figure 14000000000000000000

EqualityIncome 1999Income 2004Distribution of total income, China, urban households, 1999 and 2004

6 updatedTable 6: Comparison of pensions in China and selected world regionsA. Participating active workers, contribution rates and income replacement ratiosPer cent. China 1995 and 1999 compared with regional averages in the mid-1990sRegionContributors/ labour forcePension contributions/ wageAll social insurance contributions/ wageAverage income replacement ratioAverage pension as per cent of GDP per capitaChina199518*20**ca 2569**78**199918*25**ca 3077**99**200418*28**4161**81OECD9019343854Range79-986-3514-5725-4923-98Asia and the Pacific261417nanaRange3-733-404-46nanaEastern Europe andformer Soviet Union6622314439Range32-9720-4524-6124-6913-92North Africa and Middle East4113235571Range30-823-2713-4836-7822-144Sub-Saharan Africa61017na135Range1-183-246-33na40-207Latin America and Caribbean3312213950Range11-823-298-4613-6426-64B. Dependency ratios and spendingPer cent. China 1995 and 1999 compared with regional averages in the mid-1990sRegionPensioners/ active participantsPopulaton 60+/20-59Pensioners/ population 60+Pensioners/ Total populationPension spending as per cent of GDPChina199526**1724*2*2*199931**2027*3*3*200434**2127*3*3*OECD47341022010Range27-7427-4254-1358-295-15Asia and the Pacific20153931Range5-5612-181-1170-60-3Eastern Europe andformer Soviet Union6328136207Range47-9515-3988-17811-282-14North Africa and Middle East30155843Range19-509-295-940-100-6Sub-Saharan Africa7121511Range0-3710-160-1210-100-3Latin America and Caribbean25174643Range4-7012-355-1521-260-13* The regular urban pension system and that for civil servants. ** The regular urban pension system. N.B. employee contribution rates increased every year 1997-2001. Source: Figures for China are calculated by the OECD. Calculations for other regions

MBD00072524.xls

Chart71019.523.223.541658597

% of populaton 60+

1 updatedTable 1: An Overview of Social Protection Programmes in ChinaProgrammeExpenditureRevenueRecipientsContributorsRatio(million yuan)% GDP(million yuan)% GDP(million)(million)Recip./Contrib.19992004199920041999200419992004199920041999200419992004Old Age Insurance192,485350,2102.3452.559196,512425,8402.3993.11129.8441.0395.02122.500.310.33Occupational Injury1,5423,3300.0190.0242,0885,8300.0250.043--39.1268.45Maternity7131,8800.0090.0141,0753,2100.0130.023--29.343.84Health insurance*6,90786,2200.0840.6308,987114,0500.1100.8335.5615.0990.450.370.00Unemployment Insurance9,16021,1000.1120.15412,52029,1000.1530.2131.0198.52105.840.010.00Total Social Insurance210,807462,7402.5693.381221,181578,0302.7004.223----0.000Disaster Relief3,4054,8990.0410.036--------Social Welfare and Relief Funds4,85226,5290.0590.194--------Lowest Cost of Living Guarantee--------5.3236.07--thereof urban--------2.6622.05--thereof rural--------2.6614.02--Temporary relief funds--------18.1720.05--thereof urban--------1.572.85--thereof rural--------16.6017.20--Recipients of the 5 Guarantees--------3.043.94--Pensions for Handicapped and Bereaved Families5,46010,7780.0670.079--------Other2,3069,1820.0280.067--------Total Social Security and Welfare16,02356,3460.1950.412--------Memorandum:Subsidies to social security programmes32,5370.3970.000Price Subsidies38,3710.4680.000Expenditure on Retired in Administrative Departments36,0150.4400.000Public Health Expenditure43,8490.5350.000Source (1999): Ministry of Labour and Social Security, China Social Insurance Year Book, 2000 and China Statistical Yearbook, 2000.GDP 1999 CNY8,206,700Source (2004): China Statistical Yearbook, 2005, tables 8-8, 23-30, 23-37, 23-38, 23-39GDP 2004 CNY13,687,590

Figure 1

Figure 12.34546674320.01878513790.00868485460.08416720010.11161611230.04149048720.0591224210.06653100140.02809899072.55859504850.02432860720.01373506950.62991366630.15415423750.03579154550.19381790370.07874286120.0670826639

Old Age InsuranceOccupational InjuryMaternityHealth InsuranceUnemployment InsuranceDisaster ReliefSocial Welfare and Relief FundPensions for Handicapped and Bereaved FamiliesOtherin % of GDPSpending on Social Security in China, 1999 and 2004 (% of GDP)

2 updatedTable 2: Spending on Social Security in China, 1989 to 2004 (% of GDP)YearAge pensionsHealth insuranceOccupational injury insuranceMaternity InsuranceUnemployment insuranceTotal social insuranceSocial welfare and relief fundsDisaster reliefPensions for Handicapped and Bereaved FamiliesExpenditure on RetireesOtherTotal19890.70---0.010.700.060.080.090.050.020.9919900.81---0.010.810.070.070.090.050.021.1119910.80---0.010.800.060.100.080.050.021.1119921.21---0.021.210.050.060.070.050.021.4619931.360.000.000.000.031.390.050.040.060.040.021.6119941.410.010.000.000.031.450.040.040.050.040.021.6519951.450.010.000.000.031.500.040.050.050.040.021.7019961.520.020.010.010.041.590.040.060.050.020.021.7819971.680.050.010.010.051.800.050.050.050.020.031.9919981.930.070.010.010.072.090.050.070.050.020.032.3119992.350.080.020.010.112.570.060.040.070.020.032.7920002.360.140.020.010.142.670.070.030.070.030.052.9020012.390.250.020.010.162.820.090.040.070.030.043.1020022.700.390.020.010.183.300.130.030.060.040.093.6620032.660.560.020.010.173.420.190.050.080.040.073.8520042.560.630.020.010.153.380.190.040.080.040.073.79Source: Calculated from China Social Insurance Yearbook, 2000 and China Yearbook, 2000 and 2005, tables 3-1, 8-8, 23-39AbsolutePercentage of GDPAbsolutePercentage of GDPPension forExpenditure onSocial WelfareExpenses onPension forExpenditure onSocial WelfareExpenses onYearGrossBasicUnemploymentMedicalWorkMaternityBasicUnemploymentMedicalWorkMaternityYearTotalDisable andRetireesand ReliefDisasterOthersTotalDisable andRetireesand ReliefDisasterOthersDomesticTotalPensionInsuranceInsuranceInjuryInsuranceTotalPensionInsuranceInsuranceInjuryInsuranceBereaved FamiliesFundsReliefBereaved FamiliesFundsReliefIncomeInsuranceInsuranceInsuranceInsuranceRevenuesExpenses198949.6014.438.5610.8012.882.930.2930.0850.0510.0640.0760.017198916909.2120.9118.82.00.7150.7030.0120.0000.0000.000199055.0416.619.6012.0713.333.430.2970.0900.0520.0650.0720.018199018547.9151.9149.32.50.8190.8050.0140.0000.0000.000199167.3217.2110.3213.1822.514.100.3110.0800.0480.0610.1040.019199121617.8176.1173.13.00.8150.8010.0140.0000.0000.000199266.4518.4512.4014.3615.895.350.2490.0690.0470.0540.0600.020199226638.1327.1321.95.11.2281.2080.0190.0000.0000.000199375.2720.7814.0917.0115.407.990.2170.0600.0410.0490.0440.023199334634.4482.2470.69.31.30.40.51.3921.3590.0270.0040.0010.001199495.1424.7820.1220.5519.4210.270.2030.0530.0430.0440.0420.022199446759.4680.0661.114.22.90.90.81.4541.4140.0300.0060.0020.0021995115.4629.1122.7824.1927.2712.110.1970.0500.0390.0410.0470.021199558478.1877.1847.618.97.31.81.61.5001.4490.0320.0120.0030.0031996128.0332.7810.6728.9839.0616.540.1890.0480.0160.0430.0580.024199667884.61082.41031.927.316.23.73.31.5941.5200.0400.0240.0050.0051997142.1437.6213.5136.5734.5119.930.1910.0510.0180.0490.0460.027199774462.61339.21251.336.340.56.14.91.7981.6800.0490.0540.0080.0071998171.2640.3816.2435.2952.3227.030.2190.0520.0210.0450.0670.035199878345.21636.91511.656.153.39.06.82.0891.9290.0720.0680.0120.0091999179.8854.5719.6848.5234.0523.060.2190.0660.0240.0590.0410.028199982067.52108.11924.991.669.115.47.12.5692.3450.1120.0840.0190.0092000213.0359.7223.7259.7128.7341.150.2380.0670.0270.0670.0320.046200089468.12385.62115.5123.4124.513.88.32.6662.3650.1380.1390.0150.0092001266.6869.8630.2689.9935.1741.400.2740.0720.0310.0920.0360.043200197314.82748.02321.3156.6244.116.59.62.8242.3850.1610.2510.0170.0102002372.9760.0341.28141.6332.9397.100.3550.0570.0390.1350.0310.0922002105172.33471.52842.9186.6409.419.912.83.3012.7030.1770.3890.0190.0122003498.8299.1542.19217.6955.7184.080.4250.0840.0360.1850.0470.0722003117390.24016.43122.1199.8653.927.113.53.4212.6600.1700.5570.0230.0122004563.46107.7849.58265.2948.9991.820.4120.0790.0360.1940.0360.0672004136875.94627.43502.1211.0862.233.318.83.3812.5590.1540.6300.0240.014GDP% of GDPYearTotalRevenue1989153.616909.20.90811096921990186.818547.91.00707303791991225.021617.81.04067481431992377.426638.11.41685518111993526.134634.41.51892482621994742.046759.41.586941021519951006.058478.11.720346933319961252.467884.61.844940384119971458.274462.61.958238901119981623.178345.22.071714795519992211.882067.52.695157861620002644.589468.12.955806259420013101.997314.83.187489672720024048.7105172.33.84955084220034882.9117390.24.15954760120045780.3136875.94.2230233861Expenses1989120.916909.20.71471743190.90811096920.714717431981.68.162751990151.918547.90.81883393811.00707303790.8188339381117.311.733881991176.121617.80.81466430441.04067481430.8146643044169.716.973491992327.126638.11.22779327351.41685518111.2277932735252.825.275581993482.234634.41.3921993741.51892482621.392199374303.730.365541994680.046759.41.45415296181.58694102151.4541529618365.736.567581995877.158478.11.4999611821.72034693331.499961182516.851.6770319961082.467884.61.59443879761.84494038411.5944387976696.169.6102819971339.274462.61.79842336961.95823890111.7984233696831.683.162619981636.978345.22.08932582982.07171479552.0893258298791.179.111919992108.182067.52.56876013952.69515786162.56876013951009.8100.9780520002385.689468.12.66642445742.95580625942.66642445741327.5132.7505520012748.097314.82.82383316823.18748967272.82383316821622.8162.2767820023471.5105172.33.30077233233.8495508423.30077233232423.4242.3400320034016.4117390.23.42141083874.1595476013.42141083873313.8331.3820044627.4136875.93.380727374.22302338613.380727374493.4449.34Balance atthe Year-end198981.61990117.31991169.71992252.81993303.71994365.71995516.81996696.11997831.61998791.119991009.820001327.520011622.820022423.420033313.820044493.4(100 million yuan)

Figure 2

Figure 20.99262332931.10575788091.11173843781.45954986651.60952852661.65339957311.69821572011.78291798431.98793212432.30930061322.79365011032.90453167113.09787164953.65539979433.84633568553.7923850274

Spending on Social Insurance in China, 1989 to 2004 (% of GDP)

Figure 3

Figure 30.90811096920.71471743198.162751.00707303790.818833938111.733881.04067481430.814664304416.973491.41685518111.227793273525.275581.51892482621.39219937430.365541.58694102151.454152961836.567581.72034693331.49996118251.677031.84494038411.594438797669.610281.95823890111.798423369683.16262.07171479552.089325829879.11192.69515786162.5687601395100.978052.95580625942.6664244574132.750553.18748967272.8238331682162.276783.8495508423.3007723323242.340034.1595476013.4214108387331.384.22302338613.38072737449.34

&APage &PRevenue (left)Expenditure (left)Balance at Year-end (right axis)% of GDPin billion YuanTrends in retirement insurance revenue/expenditure and cumulative balance, 1989 to 2004

3 updatedTable 3: The urban old-age pension insurance system, 1989-1999A. Workers for whom contributions are paidYearMillions of workersCovered workers as per cent of total populationCovered workers as per cent of urban employmentSystemic dependency ratio: contributors per recipientRevenue as per cent of GDP*Surplus (deficit) as per cent of GDP*Average contribution as per cent of average SOE wageItem198948.24.333.475.40.90.214.820002001200220032004199052.04.630.525.41.00.215.1199156.54.932.375.21.00.215.4199277.76.643.534.61.40.216.3Economically Active Population (10 000 persons)7399274432753607607576823199380.16.843.854.41.50.117.8Total Number of Employed Persons (10 000 persons)7208573025737407443275200199484.97.145.544.11.50.117.4Number of Employed Persons by Urban and199587.47.245.893.91.60.219.3Rural Areas (10 000 persons)199687.67.243.963.71.70.221.3Urban Employed Persons2315123940247802563926476199786.7741.733.41.80.122.9Rural Employed Persons4893449085489604879348724199884.86.839.213.11.9-0.122.4Number of Staff and Workers (10 000 persons)1125910792105581049210576199995.07.642.403.22.40.024.2Number of Registered Unemployed Persons5956817708008272000104.58.245.133.32.50.222.8in Urban Areas (10 000 persons)2001108.08.545.123.42.60.220.6Registered Unemployment Rate in Urban Areas (%)3.13.64.04.34.22002111.38.744.913.33.00.322.12003116.59.045.423.33.10.5na2004122.59.446.273.23.10.6naB. Pensions and pensionerstable 9-2YearMillions of recipientsRecipients as per cent of populationRecipients as per cent of populationSpending as per cent of GDP*Average pension as per cent of GDP per capita*Average pension as per cent of average SOE wageAverage real pension (1999 yuan per year)average pension at current pricesConsumer Price Index (1985=100)average pension in real 1999 YuanYear60 years and over100.00.3033060358198519898.90.8-0.788.764.72,7371330.1160.20.48589626932737.4876789339198919909.70.8100.895.467.73,0881547.0165.20.50106157113087.50337397071990199110.90.910.80.885.364.33,0751592.8170.80.51804670913074.6550536821991199216.81.4-1.284.266.53,4741914.5181.70.5511070673473.83271749371992199318.41.6-1.487.672.44,0482558.5208.40.63208977864047.75651907981993199420.81.7-1.481.566.34,0533179.2258.60.78434940864053.34066894631994199522.41.919.51.478.367.24,1183782.0302.80.91841067644117.99608578511995199623.61.9-1.578.969.74,3994375.5327.90.99454049144399.47568474481996199725.32.1-1.782.073.24,8314939.3337.11.02244464664830.83771414691997199827.32.2-1.988.372.35,4655542.5334.41.01425538375464.64872410381998199928.62.4-2.398.975.56,4516451.5329.716451.45411029961999200030.22.523.22.494.569.96,6476673.6331.01.00394297856647.37590751392000200131.72.6-2.490.161.46,7926866.3333.31.01091901736792.17892479672001200233.52.8-2.796.261.27,8587879.9330.61.00272975437858.43973669072002200335.63.022.82.789.0na7,9698087.9334.61.01486199587969.48051990282003200437.83.223.52.681.1na8,0948536.3347.71.05459508648094.38064634362004Sources: China Social Insurance Year Book 2000, China Statistical Year Book 2000 and informationfrom MOLSS. The figures refer to the main urban pension system and do not include civil servants.Tables 3-1, 4-1, 4-15, 5-4, 23-37, 23-39*total Chinese GDPNumber of People Participated in Basic Pension InsurancePopulationtable 4-1table 23-37(10 000 persons)YearNumber ofTotalEmployeesEnterprisesNumber of RetireesEnterprises(including others)(including others)10 000 people1 mio peoplePart EmplRetireesTotal% of Pop198957104816.94816.9893.4893.419891127041127.0448.1690548.93354457.1025985.0665990559199061665200.75200.7965.3965.319901143331143.3352.0070139.65310161.6601145.3930286094199167405653.75653.71086.61086.619911158231158.2356.53657410.86575767.4023315.8194254164199294567774.77774.71681.51681.519921171711171.7177.74658816.81495394.5615418.0703878093199398488008.28008.21839.41839.419931185171185.1780.0816718.39444798.4761178.30902883131994105748494.18494.12079.42079.419941198501198.584.94141220.794105.7354128.82231222361995109798737.88737.82241.22241.219951211211211.2187.37792922.411584109.7895139.06444902211996111178758.48758.42358.32358.319961223891223.8987.58410523.583113111.1672189.08310534441997112048671.08671.02533.42533.419971236261236.2686.709725.3343112.0449.06314205751998112038475.88475.82727.32727.319981247611247.6184.75827527.27313112.0314058.97968155111999124859501.88859.12983.62863.819991257861257.8695.0181129.835976124.8540869.925912740720001361710447.59469.93169.93016.520001267431267.43104.47496531.699347136.17431210.744128827620011418310801.99733.03380.63171.320011276271276.27108.0188533.806353141.82520311.112476435220021473711128.89929.43607.83349.220021284531284.53111.28836.078147.36611.47236732520031550711646.510324.53860.23556.920031292271292.27116.46538.602155.06711.999582130720041635312250.310903.94102.63775.020041299881299.88122.50341.026163.52912.580315106table 4-15PopulationAged 60Yearand Over2004154,90220031532692000129977870Sampling size is 0.966 promille0.9821/0.9661.035201.0183299389in million pers2004160.354156.0784114053129.977875-4 Number of Employed Persons at the Year-end in Urban and Rural AreasYearTotalGDP perCapitaRegionSubtotalYearGrossPopulation(URBAN)DomesticProduct197840152951419783624.11980423611052519804517.81985498731280819858964.419895532914390198916909.211.27041500.3219906474917041199018547.911.43331622.2719916549117465199121617.811.58231866.4519926615217861199226638.111.71712273.4419936680818262199334634.411.85172922.3119946745518653199446759.411.9853901.4919956806519040199558478.112.11214828.0719966895019922199667884.612.23895546.6319976982020781199774462.612.36266023.221998