China's rapidly aging population is causing something of a headache for central government lawmakers. It’s a problem that affects many developed countries across the world, driven by improvements in medical technology, and lower birth rates.
Who will care for the increasing number of retired people when, as seems likely, they outnumber the rest of us, at some stage in the near future? The State Council has begun trying to address the problem. On Friday, it published a number of proposals aimed at improving pensions and welfare for old people.
The State Council says that by 2020, 90 percent of urban areas and 60 percent of rural areas should have established pension systems. It’s suggested the expansion could be funded by using at least 50 percent of China's social welfare lottery fund.
One of the specific suggestions attracting great attention is the so-called "reverse mortgage" program. Under the scheme, homeowners over 60 would be able to borrow money against the value of their property. No interest will be charged until the borrower dies or the home is sold.
A pilot program of the reverse mortgage scheme, and a number of other laws and regulations, is expected to start next year.
China’s over 60 population topped 200 million by the end of 2012. That figure is expected to reach 300 million by 2025.