Core Viewpoint - The insufficient pension gap will impact consumption growth for about half of China's population, necessitating structural reforms to enhance consumer spending and address the needs of low-income groups [2][4]. Group 1: Pension System and Economic Impact - The current pension system shows a significant disparity, with urban civil servants receiving an average pension of over 6000 yuan, while rural farmers receive only about 200 yuan, leading to a disparity of nearly 30 times [4]. - Addressing the pension gap is crucial as it will affect consumption growth, which is vital for overall economic stability [4][5]. Group 2: Proposed Solutions - It is suggested to allocate a large scale of state-owned equity capital to social security funds and engage in capital market operations to create a sustainable pension system [5][6]. - The plan includes two phases: first, increasing rural pensions from 200 yuan to 620 yuan by 2025, and then to 1000 yuan within two years to align with urban pension levels [5][6]. Group 3: Economic Growth Projections - Implementing the proposed pension reforms could generate an additional demand of 8.3 trillion yuan over the next five years, potentially increasing GDP growth by 0.3 to 0.5 percentage points annually [5][6]. - The ratio of urban to rural pensions is expected to decrease from 15:1 to 3.5:1, which would help in narrowing the income gap [6]. Group 4: Capital Market Stability - Transferring state-owned capital to social security funds could stabilize the Chinese capital market, which has been historically volatile due to a lack of institutional investors like pension funds [6]. - If implemented, pension assets could account for over 20% of the stock market, reducing the gap with developed countries and contributing to long-term market stability [6].