The introduction of the “one-child campaign” in the 1970s helped to reduce fertility rate considerably. Together, with the decrease in mortality rate, China now face the problem of aging population. The increasing proportion of elderly people of age over 65 will raise from 7.7% in 2006 to 20% about 2040. Moreover, there will be a decrease in the ratio of working people to support each elderly from 5 to 1 to 3 to 1. This results in an increase of amount of money needed to pay by individual to support the elderly group. This is further explained in the forecast that by 2050 the elderly group will increase by 422 million and the working group (below age of 50) will decline by more than 165 million.
