In early March, the Communist Party announced plans to gradually raise the retirement age, sparking concern among the working and middle classes. A sales manager in his 30s in Guangzhou said people in their 50s and 60s could face serious problems such as a significant drop in income or even unemployment, as few private companies are willing to hire such old employees.
Hong Kong‘s English-language media, the South China Morning Post, reported on March 30 that Beijing‘s announcement of plans to gradually raise the legal retirement age has sparked deep concern among the working and middle classes, many of whom may now have to work several years longer than planned. They are struggling to get their financial situation back on track after losing income due to the Communist Party’s viral Epidemic and China’s economic downturn.
On Sina Weibo, a popular post about the new policy has been read more than 210 million times in the past two weeks, with more than 19,000 comments.
“No one knows what an aging China will look like in 20 years, and we are all filled with fear and uncertainty about it,” said Gong Wentao, a Shenzhen-based IT expert.
As for how to prepare for old age, Gong says some of his colleagues are planning to sell property in second- and third-tier cities, and some are considering mortgaging their homes to invest in high-return financial products. He, on the other hand, has opted for a strategy of cutting back on daily expenses.
In any case, he says, “it reflects our anxiety about delaying the retirement age.”
China’s population is now aging rapidly and its fertility rate is plummeting, setting the stage for a demographic Time bomb that could put the brakes on the country’s economic growth.
The Chinese Communist government gave a response by announcing in early March that it would extend the retirement age.
The move touched a nerve with ordinary Chinese, especially those born after 1970, the newspaper said.
James Qiu, a sales manager in his 30s in Guangzhou, said it was “unscientific and unfair” to raise the retirement age by comparing China to developed countries, where people typically work longer hours.
He said, “China’s basic social security, support and public services lag far behind those countries.”
He added, “We will face serious problems in our 50s and 60s; it could be a significant drop in income or even unemployment, because in today’s job market, few private companies will hire such old employees.”
This, he argues, will increase the burden of health care costs and mortgage payments.
In addition, China is Home to more than 270 million low-wage migrant workers, who are in the worst position because of delayed retirement.
Xie Zefei, a warehouse manager in Dongguan’s manufacturing center, said the extension of the retirement age to 65, but the difficulty of guaranteeing that migrant workers can maintain a stable income until they turn 65, is most unfair to low-income workers.
He said, “We have been working overtime in factories every day for decades, and our strength and physical functions deteriorate in our fifties. You can see that most migrant workers in their 50s are forced to leave the city and return to the countryside to make a living from their savings or odd jobs, but with poor pensions.”
Delaying retirement will only exacerbate inequality, he said, because social security services are much worse in rural areas than in cities.
Some studies suggest that delaying retirement may also delay the age of childbearing in China and further reduce the country’s fertility rate because of the high opportunity cost of childbearing and the lack of affordable childcare.
Liu Shuya, a barista who is almost 30, is soon to have her first child.
The price and cost of living in the city are so expensive that young couples like me have to work full-time, and we all rely on our grandparents to take care of our children,” she said. Extending the retirement age will definitely weaken people’s willingness to have children.”
A study released by the School of Economics at Fudan University showed that the fertility rate of their children is positively affected by about 6 to 9 percentage points when Parents retire.
Feng Jin, a professor at Fudan University’s School of Economics, said the fertility rate and consumption of middle-aged and older people may decline in the short term due to the increase in retirement age.
Feng Jin said public opinion is largely against postponing the retirement age, and this policy needs to be launched with caution. However, in today’s China, the public has little opportunity to discuss the proposed reforms.
If China can become a developed country with good social security like Europe and Japan before the aging crisis erupts, he said, these concerns may be redundant, “but for now, I’m just worried that extending retirement will definitely give up the idea of having two children.”
Recent Comments