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Does the New Rural Pension Scheme improve residents’ livelihoods? Empirical evidence from Northwestern China

Author

Listed:
  • Yan Chen
  • Lisheng Zhao
  • Yubing Fan
  • Bingxue Xie

Abstract

The sustainable development of pension systems has been investigated from a financial perspective worldwide. However, the pension adequacy and its effect on the sustainability of a national pension system are still understudied. Using actual replacement rate and modified living standards replacement rate, this study empirically evaluates whether China’s New Rural Pension Scheme (NRPS) grants enough livelihood protection for the rural residents in the Northwestern China. The results show that the NRPS fails to meet the basic needs of the elderly people (i.e., age of sixty years or older) or the middle-aged people (forty-five to fifty-nine years old), while it only provides limited protection for the young people (sixteen to forty-four years old). These findings suggest that the current NRPS benefits are very low in the Northwestern China and policy reforms should be further implemented to improve the sustainable development of the New Rural Pension Scheme.

Suggested Citation

  • Yan Chen & Lisheng Zhao & Yubing Fan & Bingxue Xie, 2021. "Does the New Rural Pension Scheme improve residents’ livelihoods? Empirical evidence from Northwestern China," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-16, April.
    • Handle: RePEc:plo:pone00:0250130
    DOI: 10.1371/journal.pone.0250130
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    References listed on IDEAS

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    1. Xiaohua Chen & Zaigui Yang, 2019. "Stochastically Assessing the Financial Sustainability of Individual Accounts in the Urban Enterprise Employees’ Pension Plan in China," Sustainability, MDPI, vol. 11(13), pages 1-20, June.
    2. Yueqiang Zhao & Manying Bai & Yali Liu & Junzhang Hao, 2017. "Quantitative Analyses of Transition Pension Liabilities and Solvency Sustainability in China," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    3. Aaron George Grech, 2018. "What Makes Pension Reforms Sustainable?," Sustainability, MDPI, vol. 10(8), pages 1-12, August.
    4. repec:wbk:wbpubs:13102 is not listed on IDEAS
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    Cited by:

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    2. Songbiao Zhang & Xining Wang & Huilin Wang, 2025. "Few and Unfair: Measurement and Decomposition of Regional Disparities in Pension Benefits among Urban and Rural Residents in China," SAGE Open, , vol. 15(3), pages 21582440251, August.
    3. Xia, Chunlong & He, Yujuan & Heng, Yuanyuan & Kang, Kabwon & Shenchen, Huiya & Hao, Yuesui & Meng, Zhaojun, 2025. "Pension system reform, financial security, and the well-being of the elderly population: An analysis based on CSS data," International Review of Economics & Finance, Elsevier, vol. 101(C).

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