ABSTRACT
China has the world’s largest ageing population and one of the fastest ageing societies worldwide. Population ageing poses great challenges for China over the coming decades. The financial challenge includes tremendous pressure on the current pension system resulting from a sharp decline in the contributor-pensioner ratio, which can be mitigated by postponing the retirement age. China has a disparate employment pattern between rural and urban residents, especially for those aged 60 and over due to the generous retirement program for urban people, implying a large potentially unutilized capacity to work. Postponing retirement requires health improvements. Many older Chinese people suffer from poor physical and mental health and cognitive function impairments, accompanied by unhealthy behaviors. In addition, ageing poses unprecedented challenges to family-based elder care due to a dramatic decline in the numbers of and the out-migration of children. Consequently, it is necessary for the Chinese government to fully relax the family planning policy, reform the healthcare system to promote healthy ageing, and introduce innovations in the pension and retirement system to enable longer working lives.
