China

In China the pension system, which was introduced in 1952, supports only employees of state-owned enterprises in urban areas; its coverage now includes about 140 million persons (Poston and Duan, 2000). Farmers do not have a retirement pension, but continue to work until their health fails. In general (with extent depending on location), China provides the "Five Guarantees" of food, clothing, shelter, medical care, and a funeral for old persons who are childless, disabled, and have no close relatives to rely on (Poston and Duan, 2000). According to the 1992 survey of the elderly, only 5.9 percent of the rural elderly age sixty and over were pension recipients, in contrast to 73.7 percent in the urban areas (CRCA, 1994). The rural elderly have almost no social security coverage. This is a strategically important issue to be considered by policy makers; the old age insurance system should be made universal and strengthened as soon as possible.