We relate household saving to pension reform, to explain the high household saving rates in urban China from a new perspective. We use the exogenous policy induced variation in pension wealth to explicitly estimate the impact of pension wealth on household saving, and obtain a significant offset...

We provide a detailed overview of the current state of the Chinese pension system, as well as its development, its problems and some ideas for future reforms.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without...