Sources from the Ministry of Civil Affairs say, with the economic and social development, the contradiction was sharpened between the growing demand for social welfare service and the acute shortage of current welfare supply. It is estimated that China's current social welfare can only meet 5 percent demand.

Statistics show the number of elderly aged over 60 in China has exceeded 0.126 billion, accounting for 10 percent of the total population, and the figure will reach 0.28 billion, for 18 percent of the total, by 2025, and over 0.4 billion by 2050, thus weakening the tradition function of supporting the family elderly members and dramatically increasing the demand for socialized support of the aged.