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Do you know your pension upon retirement? In China, that depends on where you work – in a State agency or an enterprise. According to the current dual-track system, the former could get 80 to 90 percent of his salary after retirement, while the latter may get only 40 to 60 percent.
This may be about to change.
Reform of the dual-track system has always been difficult. In 2009 China tried to reform the system in six provinces and municipalities, but it was suspended over fears that pensions for some might actually shrink.
Of course, reform of the pension system is a long, comprehensive process, and they need to make the transition as smooth as possible to avoid opposition and instability. However, the longer they wait, the more difficulties and opposition it will meet, as more people’s interests will be involved.
Of all the pension reform measures, the dual-track system is among the most important, as it is directly concerned with equality. The reformers could be both courageous and smart to accelerate the reform. After all, the problem can be solved by everything but waiting.