What is the current pension replacement rate in China?

At present, the replacement rate of social security pension in China is around 40%, which is at a relatively low stage. Coupled with the slow progress of the enterprise annuity system, the retirement life of retirees is not very ideal, and only basic protection can be achieved.

The so-called pension replacement rate refers to the ratio of the pension received by retirees in the year of retirement to the wage income level before retirement.

The function of pension replacement rate is to measure the living security level of workers before and after, and the higher the ratio, the better.

Pension replacement rate is a part of a regional or national pension insurance system. The higher the proportion, the more perfect the local endowment insurance system.

People's Republic of China (PRC) social insurance law

Article 16

Individuals who participate in the basic old-age insurance will receive the basic old-age pension on a monthly basis if they have paid a total of fifteen years when they reach the statutory retirement age.

Individuals who participate in the basic old-age insurance and pay less than fifteen years when they reach the statutory retirement age can pay for fifteen years and receive the basic pension on a monthly basis; Can also be transferred to the new rural social endowment insurance or urban residents' social endowment insurance, enjoy the corresponding pension insurance benefits in accordance with the provisions of the State Council.