17.1 Introduction

A pension is a type of retirement plan that provides monthly income in retirement. Pension insurance is an important security for the basic needs of elderly people and a stable and reliable financial source for living after retirement. The establishment of a good pension insurance system can contribute to the development of society and also to its stability and harmony. In recent years, China’s aging population has been increasing. China is the only country in the world with an elderly population of over 100 million, and it is also the country with the most severe population aging among developing countries. By the end of 2012, China’s elderly population over 60 years of age reached 194 million; it reached 243 million by the end of 2020 and will exceed 300 million in 2025.1 With the gradual increasing of the population aging, the demand for elderly care services has been increasing. The issue of pension insurance has attracted much attention from the government.