"Back in 1978, the
Chinese politburo enacted the "one-child policy", whose main purpose
was to "alleviate social, economic, and environmental problems" in
China as a result of the soaring population. According to estimates, the policy
prevented more than 250 million births between 1980 and 2000, and 400 million
births from about 1979 to 2011. And while not applicable to everyone, in 2007
approximately 35.9% of China's population was subject to a one-child restriction."
"Such an unprecedented pace of aging poses big challenges to China’s pension system. Traditionally, Chinese families have largely relied on their children after their retirement. However, after a 30-year enforcement of the one-child policy, every only-child will need to support two parents and four grandparents, which is likely to be too much of a burden. The retirees will have to depend on the national pension system. China needs to quickly catch up its pension system coverage to ensure social security, as currently only about a third of the population is covered. Furthermore, how to finance the pension system remains a big question as China’s labor force shrinks."
