The paper “ Recent System Reforms in Australia and China Pension Systems ” is a convincing example of the case study on finance & accounting. Countries based on their needs and requirements have developed a pension and retirement system which is according to the world requirements. The pension and retirement benefits are which different nations use are similar to each other with little existing between them. This is primarily due to the fact that all pension and retirement benefits system aims towards matching the international needs and standards which has thereby ensured that the people are able to benefit in a similar fashion.
This paper looks to evaluate the pension state system of both Australia and China. While looking to compare the state pension system emphasis has also been given on the retirement benefit plans and based on overall analysis recommendations is provided. This will thereby help to improve the state pension system and will develop a framework through which better objectives can be achieved. This will thereby ensure that the citizens of the economy are compensated properly and will help to fulfil the different needs of the ageing population. Basic Information about Australia & China Pension SystemAustralia’ s retirement and pension system is regarded as one of the best systems in the world because it has achieved a very high individual saving rate and ensured wider coverage at a very low rate of interest.
Despite, having such high growth rates the Australian system has shortcoming as it is dependent on the contribution plan which increases the weakness as the shortcoming of those plan has an impact on the overall plan. Its government plans for ole age pension has been well tested and provides different benefits to the elderly but has an impact on the worker's contribution account which thereby impacts the overall phenomenon of carrying and developing new pension and retirement plans (Chomik, and John, 2012). China, on the other hand, is undergoing a transformative process where it is witnessing changes in all directions which have thereby altered the manner in which different pensions and retirement plans are being developed.
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