Institutional guarantee given that pension fund can meet future needs

AFTER A REPORT issued by the Social Security Research Center with the Chinese Academy of Social Sciences earlier this month hit a nerve by predicting the pension fund may face a shortage as early as 2035, the Ministry of Human Resources and Social Security said on Tuesday that China's pension fund is sufficient to meet the needs of retirees in the long run. China Daily reporter Li Yang comments:

There has long been concern that the pension fund may run out of money because of China's fast aging society, so the ministry's response is necessary to boost confidence in the viability of the pension system and dispel people's worries.

Certainly, the report - whose conclusion is based on the worst-case scenario - can help policymakers focus attention on the pressure China's pension fund has shouldered for a long time. Which should prompt the social security authority to take more foresighted measures to rein in the potential risks and ensure the sustainability of the fund.