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Does the New Rural Pension Scheme improve residents’ livelihoods? Empirical evidence from Northwestern China

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  • Yan Chen
  • Lisheng Zhao
  • Yubing Fan
  • Bingxue Xie

Abstract

The sustainable development of pension systems has been investigated from a financial perspective worldwide. However, the pension adequacy and its effect on the sustainability of a national pension system are still understudied. Using actual replacement rate and modified living standards replacement rate, this study empirically evaluates whether China’s New Rural Pension Scheme (NRPS) grants enough livelihood protection for the rural residents in the Northwestern China. The results show that the NRPS fails to meet the basic needs of the elderly people (i.e., age of sixty years or older) or the middle-aged people (forty-five to fifty-nine years old), while it only provides limited protection for the young people (sixteen to forty-four years old). These findings suggest that the current NRPS benefits are very low in the Northwestern China and policy reforms should be further implemented to improve the sustainable development of the New Rural Pension Scheme.

Suggested Citation

  • Yan Chen & Lisheng Zhao & Yubing Fan & Bingxue Xie, 2021. "Does the New Rural Pension Scheme improve residents’ livelihoods? Empirical evidence from Northwestern China," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-16, April.
    • Handle: RePEc:plo:pone00:0250130
    DOI: 10.1371/journal.pone.0250130
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    References listed on IDEAS

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    1. Mark C. Dorfman & Robert Holzmann & Philip O'Keefe & Dewen Wang & Yvonne Sin & Richard Hinz, 2013. "China's Pension System : A Vision," World Bank Publications - Books, The World Bank Group, number 13102.
    2. Xiaohua Chen & Zaigui Yang, 2019. "Stochastically Assessing the Financial Sustainability of Individual Accounts in the Urban Enterprise Employees’ Pension Plan in China," Sustainability, MDPI, vol. 11(13), pages 1-20, June.
    3. Yueqiang Zhao & Manying Bai & Yali Liu & Junzhang Hao, 2017. "Quantitative Analyses of Transition Pension Liabilities and Solvency Sustainability in China," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    4. Aaron George Grech, 2018. "What Makes Pension Reforms Sustainable?," Sustainability, MDPI, vol. 10(8), pages 1-12, August.
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    Cited by:

    1. Lucas Sato & Nourjelha Mohamed, 2022. "The role of social insurance schemes in addressing the risks faced by agricultural workers in the Middle East and North Africa," Research Report 80, International Policy Centre for Inclusive Growth.

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