China's government is working to improve social welfare for the elderly, as the country starts to feel the pressure from its huge elderly population, according to Vice Premier Hui Liangyu.

Hui told a national conference Thursday the government would expand the basic old-age pension in urban areas and improve the pension system in rural areas.

Efforts will also be made to improve welfare for the aged, including basic health care insurance and minimum living allowances, said Hui, also head of the China National Committee on Aging (CNCA).

China had 159.89 million people aged 60 or above by the end of 2008, accounting for 12 percent of its population, according to the Ministry of Human Resources and Social Security (MHRSS). The aging population is rising rapidly.

Hui said the international financial crisis raised difficulties and challenges in coping with the aging population. But there are also opportunities brought about by the government's huge economic stimulus package, which aimed to maintain stable economic growth, improve living standards and expand domestic consumption, and policies supporting the undertakings relating to senior citizens.

He asked government departments and local authorities to pay attention to the difficulties of aged people, especially those in rural areas, and increase financial support to welfare projects for them.

By the end of last year, 219 million people in urban areas were covered by endowment insurance, while 51.71 million people have taken part in the insurance in rural areas.

The government announced last November a 4-trillion-yuan (US$586 billion) stimulus package to boost domestic demand in both infrastructure investment and consumption.

(Xinhua News Agency February 7, 2009)