China has established the social security system covering both urban and rural population with its operation faring well，many reforming policies introduced，management capabilities increased. Some long–term problems，such as unfairness and separation of schemes for different groups are being mitigated，while others concerning coverage expansion and fund sustainability are becoming serious. Recent future is the key period for accomplishment of Xiao Kang society，which provides more opportunities and challenges to the development of social insurance. It is required to improve the system construction，expand actual coverage to all people，clarify benefits adjustment mechanism，improve the efficiency of the fund management，enhance social insurance administration so as to make the system more fair and sustainable.