Under the dual pressure of a declining birth rate and an aging population, the Political Bureau of the Communist Party of China (CPC) Central Committee will decide to open up the three-child policy, meaning that each family can have three children. In addition, the authorities are discussing a gradual delay of the statutory retirement age.
Delaying retirement will help relieve pressure on social security funds
On the same day, the Political Bureau of the Communist Party of China also mentioned that “the gradual delay of the statutory retirement age should be implemented in a proper manner” and “explore the establishment of a framework for a long-term care insurance system”. Earlier, many Chinese scholars suggested that the retirement age for men should be extended from the current 60 years to 65 years. This proposal has aroused the discontent of netizens that artificially delaying retirement is tantamount to increasing social security payments and receiving less pension.
China’s social security fund has had a shortfall of income and expenditure for many years in a row since 2014, and the shortfall has been more than 700 billion in 2020, with the central government requiring central and state-owned enterprises to transfer social security in accordance with a 10 percent equity ratio of the group’s parent company from 2018.
In this regard, Zhang Jianping said that China’s move may have referred to the Russian retirement system.
“The retirement age in Russia is 65 (for men), and their (men’s) average life expectancy is only 67 years. You can’t help it, because there are too many officials to support. And with his two-track pension system, the gap between the privileged class and the ordinary people is just too big. As far as this phenomenon is concerned, he has no choice but to do it.”
The current legal retirement age in China is 60 for men, 55 for female cadres and 50 for female workers. Youjun, vice minister of China’s Ministry of Human Resources and Social Security, said at a conference at the State Information Office on Feb. 26 that this rule was determined at the beginning of the founding of New China based on many factors such as per capita life expectancy, labor conditions and employment practices at that time, but after the reform and opening up, China’s economy and society have undergone tremendous changes, and the problem of the overall low retirement age has become very prominent.
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