Construction of the first building began today in Beijing. The home will cover an area of 86,115 square metres and is aimed to create a modern mode for boosting the quality of life for old people.
The high-tech system will feature modern communication and computer technologies.
It will provide various services for the elderly, including medical care, education and entertainment facilities, said Zhu Yong, deputy head of the CNCA.
The system can also provide customised services according to different needs such as personalised rehabilitation and mental care, state-run Xinhua news agency quoted Zhu as saying.
China had about 185 million people above the age of 60 as of the end of last year, the report said.
The figure is expected to surge to 221 million in 2015, it said.