For the sixth year the government of China is increasing state pensions, and more importantly Beijing will now allow workers to transfer pension accounts across provinces and when switching jobs. (South China Morning Post, 12/23/09)
Analysts of Chinese consumers’ spending habits have often cited a fear of lack of savings in old age as a reason for China’s high private savings rate. Beijing’s increases of pension payments as well as making the pensions mobile will help address the retirement concern and potentially boost personal consumption expenditures in the communist state – a stated goal of the Beijing government in light of depressed export demand.
Michael Hines
Tags: China
