The government has increased basic aged-care pension by 5 percent for retired personnel, according to a news release by the Ministry of Human Resources and Social Security on Wednesday.

The policy, effective Jan 1, is projected to benefit 118 million employees of companies, government departments and public institutions.

According to the release, increasing the basic aged-care pension will help secure retired people a happier life against the backdrop of price hike and a sustainable pension insurance fund.

It’s the fourth consecutive year the government increase the aged-care pension for retired personnel from companies, government department and public institutions since 2016, the release said.