Report reveals pension disparity

CNC report from Beijing
Added On February 24, 2013

A government think tank report shows that nearly 40 percent of people surveyed complained that pensions are too low to meet their needs.

Besides, poor government investment in education is also revealed in the report.

The report, released by the Chinese Academy of Social Sciences, shows nearly 40 percent of 2,000 people surveyed are dissatisfied with pensions while only 17 percent said they can live off their pensions.

Elderly people in rural areas are the most dissatisfied group, with nearly 80 percent complaining about the rural endowment insurance system.

While 56 percent of their urban counterparts complained so, with only 3.8 percent of surveyed government staff had the same complaint.

The report says this revealed inadequate and unbalanced pension distribution across China.

As to medical insurance, the report says 42.7 percent of respondents complained about low medical insurance reimbursement levels.

Most of China's urban and rural citizens are now covered by one of three types of medical insurance systems.

This allows them to receive reimbursement for medical treatment, usually covering more than 70 percent of their total medical expenses.

The report also revealed poor government investment in public education, saying this has imposed heavy financial burdens on parents.

College tuition has increased significantly since 1989, with education costs for urban children now amounting to their parents' gross net income for over 4 years.

The report urged the government to encourage social investment in schools, both in cities and rural areas.