A Market-Based Approach to Sharing the Economic Benefits and Consequences of Aging in the People’s Republic of China
Publication | December 2020
This brief proposes longevity risk-sharing to help the People's Republic of China cope with its rapidly aging population. It recommends a pilot test to determine the concept's viability and effectiveness in strengthening the pension system.
Longevity risk-sharing uses diversity in the levels of socioeconomic development, and integrating the concept in the PRC's pension reforms could help reduce debt interests particularly for participating poor provinces. The pilot test cites the case of Beijing, with a high-income jurisdiction and lengthening life expectancy, and Guizhou Province, as a relatively poor but provider of elderly care workers, which can mutually benefit from longevity risk-sharing transactions.