中国应对老龄化问题的新方法

China's rapidly ageing population has posed enormous challenges to its pension system. In March this year, regulatory authorities approved a new house-for-pension scheme by an insurance company that's similar to a reverse mortgage loan. So far 22 people in four pilot cities have signed up for the program.

If you're retired and find your pension inadequate, would you be willing to sign away the deed to your house in exchange for a guaranteed monthly income?

Mr. Kang and his wife Ms. Ma are the first couple in Beijing to say yes to this house-for-pension idea.

The couple who lost their daughter tragically some years back, now get 9,000 yuan each month, over and above the pension they already receive.

Happy Life Insurance is the first company approved by the government to operate this scheme.

It's testing the waters and accepting applications in the four test cities approved for the pilot - Beijing, Shanghai, Wuhan and Guangzhou.

All participants must also be between 60 to 85 years old.

Those who are approved for the program receive monthly payments, based on the market value of their property, and their life expectancy.

Professor Dong Keyong specializes in pension systems. He says there are three main obstacles in the way of this new scheme gaining wider popularity.

First, is the traditional Chinese belief that parents should leave property to their children as an inheritance. Another issue is calculating life expectancy and how much will be paid, and for how long. It's also difficult to evaluate housing prices due to China's volatile property market and policy.

The United Nations estimates China will have nearly 440 million people over the age of 60 by 2050; around a quarter of the total.

That will push the already stretched pension system to the limit. And businesses and individuals may need to find their own ways to fill the gaps in the system.

For elders like Mr. Kang and Ms. Ma, joining the house-for-pension scheme can be a much safer way to ensure a decent life. But this program is not a one-size-fits-all solution. There are still many others in urgent need of financial support, and it's going to take time and testing to find an answer for everyone.