(Ecns.cn)--With its 1.3 billion people, China tops the world not only in total population but also in number of senior citizens, which will hit 450 million in 2030.
China has developed into an aging society before becoming wealthy enough, according to a report on the China Radio International(CRI) website, revealing that by 2030, 2.4 young laborers will have to support one elderly person, while today nine workers fill that role.
As part of efforts to address the issue, the government has decided to try out a house-for-pension program in a few cities, an experiment that has stirred heated debate among the public.
"The house-for-pension scheme is like a reverse mortgage loan. You can deed your house to an insurance company or bank, which will determine the value of your house and your life expectancy, and then grant you a certain amount every month," reported CRI, quoting Ma Guangyuan, a social commentator.
"You can still live in your house, but ownership belongs to the company or the bank. It's similar to a supplementary model for pension schemes in many other countries like Japan and the United States," Ma added.
However, though the idea has been explored for years, it has not been applied to most cities in China due to certain bottlenecks that are unique to the country.
70-year leasehold
According to China's Real Right Law, private property can be leased for only 70 years. Though related laws also stipulate that the leasehold can be automatically extended, they do not indicate clearly how much the lease extensions should cost.
Cai Yaozhong, from the Beijing Attorney Association, said that this is critical in deciding whether the house-for-pension program can be effectively implemented in the future.
"Whether we can push forward the pension scheme depends on whether people need to pay land transfer fees after their leases expire," noted Cai, adding that "if there are no such fees, or if the amount is quite low, the house would still be valuable, which would be of great help to the owners' pension provision."
