China looks to private pensions to solve aging workforce puzzle

Retirement scheme could meet funding shortfalls in country's public system

20221207 elder people in Guangdong Province of China

Elderly people on a COVID vaccination bus in China's southern Guangdong province: China has one of world's fastest-aging populations. © Getty Images

ECHO WONG, Nikkei staff writer

HONG KONG -- China has launched its first private pension scheme to plug yawning holes in its publicly funded system as the country grapples with the soaring costs of a rapidly aging society.

The scheme is initially being rolled out in three dozen cities, including Beijing, Shanghai, Shenzhen and Chongqing. Residents can invest in mutual funds and other approved offerings.

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