Abstract: China’s old-age insurance for urban residents is funded by individual contributions, government subsidies, and other economic and social organizations. This paper analyzes the data on population and finance of the provinces and cities nationwide in 2009, measures the basic living standard of urban residents according to the minimum wage standards set by different provinces (autonomous regions and municipalities), and analyzes and estimates the personal and financial contribution capabilities. The study finds that at present in China both the individual contribution standards and the financial subsidy standards are lower, to some extent, they cannot meet the basic needs of the life of urban residents in old age. Therefore, along with the increase of residents’ payment and the amount of government subsidies as well as the investment operations of the account funds, the replacement rate of old-age insurance should be gradually increased.

Key words: old-age insurance for urban residents; personal accounts; financial aid