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Report reveals pension disparity

Xinhua | Updated: 2013-02-22 22:00

BEIJING - A government think tank report has revealed inadequate and unbalanced pension distribution, as well as poor investment in education.

Nearly 39.1 percent of 2,000 people surveyed complained that pensions are too little to meet their needs, according to a report released Friday by the Chinese Academy of Social Sciences.

Only 17 percent of respondents said they can live off their pensions, the survey showed.

Elderly people in rural areas strongly complained about the rural endowment insurance system, as 78.9 percent of surveyed insurance buyers said the pensions could not meet their living needs, while 56 percent of their urban counterparts complained about the same problem.

In comparison, only 3.8 percent of surveyed government staff had the same complaint.

"Different feelings from endowment insurance participants reflect a differentiated pension welfare system," the report concluded.

However, 76.4 percent of those surveyed said they are generally satisfied with the country's endowment insurance systems.

The reported cited another survey involving nearly 2,000 people in which 42.7 percent of respondents complained about low medical insurance reimbursement levels.

Less than 10 percent of those surveyed believe the reimbursement percentage is high.

Most of China's urban and rural citizens are now covered by three kinds of medical insurance systems. The systems allow them to receive reimbursement for medical treatment, usually more than 70 percent of their total medical expenses.

The report also highlighted poor government investment in public education, stating that the government's failure to invest in schools has imposed heavy financial burdens on individuals and families.

Average college tuition has increased significantly since 1989. A college education for urban children costs their parents an amount equivalent to their parents' gross net income for 4.2 years, the report said.

The cost of a college education for a rural child is equivalent to their parents' net income for 13.6 years, it said.

The report said relevant authorities should optimize educational investment to guarantee education opportunities in rural and poor areas, as well as encourage private and social investment in the field.

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