China last year saw a half of a percentage point increase in its aged population, defined as those people 60 years old or above, equivalent to 7.25 million people, taking the total number of elderly to 167.14 million or roughly 12.5 percent of its total population. This increase is the largest one observed in an annual basis and raises concerns about the huge challenge it represents to the frail retirement system and medical insurance services for the elderly and the impact to the economy in the future.