ASIAdocument.write(“” + m[today.getMonth()+1]+ ” “+ today.getDate()+”, ” + theYear + ” “);HOMECHINAWORLDBUSINESSLIFESTYLECULTURETRAVELSPORTSOPINIONREGIONALFORUMNEWSPAPERChina Daily PDFChina Daily E-paperChina Daily Global PDFChina Daily Global E-paperBusiness /OpinionEconomyPolicy WatchChina DataCompaniesMarketsIndustriesOpinionMotoringGadgetsGreen ChinaReal pension hike needed(China Daily)Updated:2014-01-10 07:59
Comments Print Mail Large Medium SmallThe latest increase in pension will be of greater help than it seems for the countrys about 74 million retirees from enterprises thanks to the milder-than-expected inflation in 2013. However, to better prepare for the rapid aging society and allow more real pension growth, Chinese policymakers have to keep price hike under control.
On Wednesday, the government raised the basic pension of enterprise retirees by 10 percent starting Jan 1, 2014. The increase in enterprise retirees pension for the 10th consecutive year is a welcome move especially because the worlds second largest economy is likely to register the slowest growth in a decade.
It is one thing to increase pension when double-digit growth is the norm and quite another when long-term growth potential is shifting into a lower gear. Given that the number of retirees is expected to grow in the coming decades, every increase in pension will require larger funds to support.
Fortunately, with consumer inflation rising by only 2.3 percent in 2013, well below the 3.5 percent target set by the government, policymakers have been able to raise the pension for the tens of millions of retirees so that they too can share the fruits of Chinas economic growth.
While the governments efforts to keep improving the lot of the retirees is to be applauded, policymakers should exercise caution while responding to cries to loosen the monetary policy to stimulate growth.
Just because the low inflation rate is not a major concern for the moment, some people argue that a neutral monetary policy, if not an overtly loose one, would be more favorable to economic growth than the relatively tight one we have now.
That may be true for some enterprises and financial institutions which rely heavily on cheap credit, but it definitely would not be in the long-term interest of the national economy.
Since the lower-than-predicted inflation was largely because of lower increase in food prices last year, it benefited pensioners as well as other low-income groups who spend a comparatively large part of their income on food.
Therefore, there is no reason why policymakers should allow the hard-won pension growth to be easily eroded by runaway price hikes that excessive monetary supply will entail.8.03KRelated StoriesPension hiked by 10 percentSurvey reveals opposition to pension reformA long way for pensionHigher retirement age may help solve pension problemPhotoRetail giant checks outTop 10 Chinese car maker movesEarth hour around the worldWorlds eight green stadiumsHighlights of the Baselworld 2014View from on highChina Economy By NumbersChina Economy by Numbers – Dec China Economy by Numbers – Nov NewsmakerFew textbook answers from Nobel prize winner Things you didnt know about Max BaucusMost ViewedTodays Top NewsNHTSA says finds no defect trend in Tesla Model S sedansWTO rare earth ruling is unfairAmway says 2014 China sales may grow 8%President Xi in Europe: Forging deals, boosting businessCNOOC releases 2013 sustainability reportLocal production by Chery Jaguar Land Rover this yearCar lovers test their need for speed in BMW Mission 3China stocks close mixed MondayHot TopicsTaxi booking appInternet finance12306.cnHousing priceWeChat4GChina MobileIPOs resumptionEditors PicksTop 10 Chinese car maker moves Worry-free financing plans aid car owners What a phone can do via lens 9 mysterious plane disappearances SpecialsGlobal business leaders weigh in on reformsBillionaires speak out on reform rolesInternet finance is in, but is banking out?…Media : |State Administration of Foreign Experts Affairs|QQ International|Peopleforum|workercn.cn|Partners : |State Administration of Foreign Experts Affairs|QQ International|Peopleforum|workercn.cn|Portals : |www.panguso.com|www.goso.cn|Sina|Sohu|Tom|Tencent|NetEase|Hexun|Organizations : |China US Focus|FrenCham|CPAFFC|CPIFA|Gov.cn|eBeijing|AmCham|SwissCham BJ|…| About China Daily | Advertise on Site | Contact Us | Job Offer |Copyright 1995 -. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.License for publishing multimedia online 0108263 Registration Number: 20100000002731