China's pension system expands

Life expectancy has been on the rise, thanks to the expanding medical care system. But a new problem now exists, China's aging society. According to the National People's Congress, China is growing older faster than any other country.

As of the end of 2011, China had nearly 300 million people 60 years and older. That accounts for 22 percent of the world's elderly population. And by the end of 2050, that number is expected to swell to more than four hundred million. This is pressuring China to move quickly to create a sound care system for the elderly.

Right now China has three basic insurance endowments, each targeting urban residents, rural residents and enterprise employees. Both urban and rural pension plans are optional, with payments into the system supplemented by the central and provincial governments. Employees' retirement plans, which originally covered urban workers only, are mandatory. Those are paid for by employees and employers together. The law was updated in 2010 for the employee's retirement plans. Workers regardless of their official residency, or Hukou, are all to be covered.