Vice Finance Minister Wang Baoan acknowledged challenges in keeping China's pension system adequately funded during a press conference Friday morning.
Wang said China's pension fund will probably have a shortfall in the future due to growing obligations, but the government will employ a series of new mechanisms to keep the system running smoothly.
The Vice Finance Minister also said the government will increase the fund's investments and widen the scope of its investment targets in order to increase returns.
However, he pointed out that the fund won't invest in bonds issued by local government financing vehicles as many had previously speculated.