The Endowment Consumption in The 13th Five-Year Plan Will Exceed RMB 10 Trillion, with an Average Annual Increase of 17%.

Report from Beijing News The global pension industry trend report--Sharing and Cooperation: Personalized Experience of Pension Industry issued by PWC said that the current aging trend is obvious, and the consumption of Chinese pension market is expected to exceed RMB 10 trillion from 2016 to 2020 (i.e. the 13th Five-Year Plan), and with an average annual increase of 17%.  

PWC pointed out that as the increase of aging population and decrease of birth rate, China had entered into the age of aging in 2010 and the aging trend would continue at least 40 years. The senior service will be mainly divided into three categories in the future: Home-based senior, community nursing (e.g. life assistant center for the elderly and nursing home) and medical care (hospitals and clinics). According to the survey, most of the old people at the age of 65-70 are more inclined to home-based senior and accepting senior service at home.

According to the report, however, since the increased income, smaller family scale and the change of social concept, more and more old people in China choose to stay in a nursing home, which makes a substantial increase in the number of old people in nursing home. By the end of 2010, there were more than 110 million old people above 65 years old, and the proportion of choosing to stay in nursing home had reached to 2.2%. The pension industry started late in China, but with the stimulation of government's encouragement and demand, the number of nursing institutions for the aged and the involvement degree of private capital is increasing.

According to the report, the current three sources of medical cost payment in China include social medical insurance, individual payment and commercial medical treatment, and the social medical insurance and individual payment take a greater proportion. For this, Xing Liping, partner of consultation service of PWC medical industry, said that commercial health insurance will provide more personalized and customized types of insurance in the future, and it will provide VIP insurance suitable for the personal characteristics of insured people based on their ages, health condition and income. The elderly care insurance will be added via innovation and extension on the basis of existing medical insurance: provide expense payment or nursing service to the insured who needs to accept long-term care due to sickness or disability.