Is there a pension in China? What do Chinese pensioners live on?

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:46

The article will focus on whether there is a pension in China. It is important to make a reservation right away - this question belongs to the category of complex ones. In the Celestial Empire, everything is ambiguous on this issue. So, let's try to figure out if there is a pension in China, that is, a pension system.

China's pension issue in the past

China's pension system is not fair. Until relatively recently, in China, it was paid only to officials and employees of state-owned companies.

Carrying out market reforms allowed the Chinese pension system to cover the citizens involved in private business. Even so, only 30 percent of older people could be counted on to receive payments.

The rest of the Chinese pensioners (mostly from rural areas) continued the traditions of their ancestors: they were supported by their children.

Adherence to traditions has always contributed to the strengthening of family ties, caring for elderly family members is taken for granted. Therefore, if you ask in rural areas whether there is a pension in China,then, most likely, you will not receive a specific answer due to its ambiguity.

Pension issue in China today

Today, China is faced with the result of the erroneous policy of the 70s of the last century in matters of demography.

As you know, at that time, the Chinese authorities imposed a birth control. As a result, today the country is experiencing a sharp aging of the population with a simultaneous reduction of young people, who are traditionally entrusted with the maintenance of elderly parents.

China today is the world leader in the number of pensioners.

How many Chinese people will retire in 20 years and whether the state will be able to provide them with a decent old age is a question that is acute for the authorities today. Already today, the deficit of the country's pension system "eats" up to 40% of the state budget revenues. Analysts are talking about $11.2 trillion in PF deficits by 2033.

Chinese demographers predict a situation where only two residents will work for one pensioner.

Unpopular measures looming on China's political horizon, including raising the retirement age.

Chinese retirement age

Interestingly, the retirement age in China varies by industry and region.

Today it is 60 years for men and 55 years for women working in the administrative field. Women who work physically have the right to retire at 50. Such an age system has existed in China for half a century. At that time, life expectancycountry averaged about 50 years.

Currently, this figure has increased. Men live on average up to 75 years, women - up to 73.

In this regard, the Ministry of Labor and Welfare of China went to the government with a proposal to gradually increase the retirement age, starting in 2016. For less than 30 years, it is proposed to equalize the age of men and women eligible for a pension. If this is implemented, then in 2045 the Chinese will go on a "well-deserved rest" at 65.

What do Chinese pensioners live on

Of course, the first and foremost question for pensioners in any country is the question of how much pension payments.

In China, pension accruals depend on where a person lives (in a city or village), as well as on who he works for (state or private company). There is no single basic pension in the country.

The average pension in China at the place of residence differs significantly and amounts to one and a half thousand yuan for urban residents, for villagers - from 55 to 100 yuan (pensions in the village were introduced only in 2009). The state pension of urban residents is approximately 20% of the average salary, rural residents - 10%.

The basis for receiving a minimum pension for civil servants is 15 years of work experience at a state-owned enterprise, as well as deductions of 11% of the salary to the state pension fund (PF). For state employees, deductions to the Pension Fund are made by the state, the size of the pension is tied to the salary in the public sector.

In the private sector of work, everything is somewhatotherwise: the employee sends 8% of his salary to the Pension Fund, 3% - the employer.

In some regions of the PRC, the size of the pension is formed at enterprises where employees themselves accumulate savings for future old age. In the future, the organization pays them pensions based on the amount that they have collected during their work.

Chinese retired about retirement

Does China have an old-age pension? If you ask this question to the Chinese themselves, then in response you can hear that in the country every fourth resident who has reached the age of 60 receives it. This is confirmed by the statistics of China.

However, it seems that the Chinese themselves are not particularly interested in the question: "Is there a pension in China?" Here, apparently, the mentality of people who honor the traditions of their ancestors affects. For thousands of years, the Chinese lived, relying only on themselves and their loved ones. Being enterprising by nature, they have no problems with socialization, they do not need outside help. For the Chinese, retirement is a time when the soul sings, because it is free from previous worries.

The fact is that older residents of the Celestial Empire no longer value the financial component of the pension, but the normal attitude of loved ones and society as a whole.

After taking a well-deserved rest, the Chinese are actively striving to make up for lost time for rest. Their favorite pastime is dancing in the evening. On playgrounds in parks, near the metro and even on the road, you can see pensioners dancing not only a folk dance with fans to drums and tambourines. Older people are also fond of w altz and tango.

By the way, this hobby often brings income to the most prominent retired dancers: performing at festivities and corporate parties, they receive a certain fee for this.

The new hobby of China's pensioners has become domestic and foreign tourism. This contributes to the development of the tourism sector of the country's economy, and makes life in retirement even more interesting. Therefore, to the question: "Is it interesting to live in retirement", the older generation of Chinese will definitely answer "yes".

China in search

China's pension system, its strengthening is not an easy question. The prerogative in its decision is assigned to the state.

As history shows, the country has always found a way out of difficult situations. Today, the PRC government is looking for models that allow more flexible management of the pension system. Therefore, the question of whether there is an old-age pension in China can be classified as rhetorical. Of course there is.