How many pension programs does China have and which ones are compulsory?

China has three pension programs:

• Basic pension insurance scheme for urban employees
• Urban residents pension program
• Rural pension program.

The basic pension insurance scheme for urban employees is compulsory, the other two programs are for residents who are not employed and can join these respective insurances on a voluntary basis.

For the basic pension insurance scheme, both employees and their employers are required to make payments to the pension system. Employees only become eligible for pension benefits at retirement if they have participated in the scheme for at least 15 years.

The other two voluntary pension programs requires residents to pay premiums accumulated in an individual account for at least 15 years, and receiving pension payment upon retirement. In addition to the funds in the individual account, pension payments are subsidized by government funds.