The Ministry of Human Resources and Social Security said in a written statement posted on its website on June 6 that it is conducting research into a more flexible retirement and pension system to keep a balance between employment and an expected shortfall in retirement payments in China. But it did not clarify detailed plans.

In China most men retire at 60 and women at 55. Almost all employees in China, in both private and state-owned organizations, have an individual pension account, to which both employee and employer have to make a monthly contribution. The employee cannot withdraw any funds until he or she retires.

However, the country is facing a ballooning deficit in its retirement pension funds due to an aging population. For example, in line with the current contribution ratio, the pension funds only pay women about 40 percent of their working wage monthly for 15 years after retirement.