Editorial | Decisions need to be made on the complex issue of retirement
- A fast-ageing population with evermore retirees and a shrinking workforce is a serious problem in mainland China with a state think tank estimating that funds in the urban pension scheme may be depleted by 2035
- Social well-being and stability are at risk if far-reaching measures are not soon put in place
Retirement is a complex issue in mainland China, given the size of its population, fast-changing demographics, gap in development between urban and rural areas and differing pension contribution rates from place to place.
Life expectancy is rising, birth rates falling and the stress on the mandatory welfare fund mounting. There is consequently uncertainty for many Chinese about what to expect when they stop working.
Authorities are well aware of the challenges and have plans for a way forward, but it will take time to formulate and put in place the far-reaching measures.
How much a person needs to retire is a question that has no straightforward answer. The mainland has achieved remarkable economic growth and development over the past four decades and lives have markedly improved.
But while a social welfare system has been put in place that in theory offers good protection, in practice its effects are uneven and in places, inadequate. That is especially so for retirees; while white-collar workers can usually expect their so-called golden years to be relatively comfortable, those who have worked in factories or live in rural areas cannot count on life being so good.
