Abstract
The “Three-Pillar” framework of pension systems has been adopted both in Australia and China, with each forming its own features. An aging population and a decreasing demographic dividend impact the traditional pension system in China, the well-developed accumulation of experiences in the Australian Superannuation System are worth learning from. Moreover, the China-Australia Free Trade Agreement (ChAFTA) directly links market access between both countries. In this study, the two pension systems are compared and evaluated. The reasons for differences are discussed and the factors influencing sustainability and stability of the two pension systems are also investigated. Through comparative analysis the main institutional problems in the Chinese pension system are identified and considered.
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Notes
- 1.
Inability to pay accumulated accounts. This phenomenon and its effects will be discussed later in this study.
- 2.
Geometric average. Data source: NBS (1979–2017) [13].
- 3.
Geometric average. Data source: NBS [13].
- 4.
Geometric average of SSF performance 2000–2016. Data Source: SSF [15].
- 5.
The number is from Xu and Qian ‘With the limited assets allocation, the investment return rate from the fund of the basic pensions was no more than 2% in the last 10 years.’ [9] The rate 2% is also the discount rate which is adopted by OECD statistics for pension wealth calculation.
- 6.
Source: CISS CASS [20].
- 7.
MOHRSS [11]. No official report on this information after 2014.
- 8.
APRA [1].
- 9.
Including the CA Individual Accounts for both Urban Working Cadres and Urban and Rural Residents. Data Source: MOHRSS [11]. No official report on this information after 2014.
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Thanks the funding from Australia Studies Center, Xihua University, Project: szjj2015-095.
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Mao, Q., Wren, D., Zhang, P. (2019). Australian and Chinese Pension Systems—A Comparative Study from an Institutional Perspective. In: Xu, J., Cooke, F., Gen, M., Ahmed, S. (eds) Proceedings of the Twelfth International Conference on Management Science and Engineering Management. ICMSEM 2018. Lecture Notes on Multidisciplinary Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-93351-1_126
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