Premier Li Keqiang said on Tuesday that China has the ability to pay pension benefits to the senior in time and in full.

The balance of the country's pension funds stands at 4.1 trillion yuan (US$645 billion), Li told a press conference following the conclusion of the annual legislative session.

"We have more revenue than expenditure," Li said. "We also have 1.8 trillion yuan social security fund as a strategic reserve".

The premier announced measures to further improve the government's pension payment ability.

"We should have the confidence in the future," he said. "It is our responsibility... After all, it will be very disappointing if decades of hard work cannot earn one decent retirement."