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The China economic weekly “reporter Hong-ru wang | reports from Beijing

Cover of the 19th issue of China Economic Weekly in 2022

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The China economic weekly “reporter Hong-ru wang | reports from Beijing

Sixty years ago, the baby boom has evolved into a retirement boom. According to public data, the post-1960s generation is retiring at an average rate of 20 million per year.

A large proportion of retirees born in the 1960s are parents of only children. Lacking many children to support them, they can rely mainly on pensions. At present, the endowment insurance system composed of three pillars has been established. The first pillar is basic endowment insurance, the second pillar is enterprise annuity and occupational annuity, and the third pillar includes individual savings endowment insurance and commercial endowment insurance.

According to the Ministry of Human Resources and Social Security, by the end of 2021, the first pillar of pension accounted for 65.76%, the second for 34.23%, and the third for 0.01%.

The first pillar accounts for more than half of the population, which is mainly responsible for providing for the elderly. In the face of the surging “retired” army, how to develop the second pillar and the third pillar, so that the post-60s group can live a life of “having something to rely on and support for the elderly”? For the younger elderly, how to promote the “old work” so that they can reap more pension benefits? This is a problem faced by the whole society.
Citizens line up to receive their pensions at the Bank of Shanghai

The first pillar pension accounts for more than half, bearing the burden of pension

“Of the 600 people in our unit, 40 will retire this year, including two from the leadership. On average, 40 to 50 retirements per year over the years.”

Zhang Xinran, who works at a public institution in Beijing, told China Economic Weekly, six months before her “official retirement”. See THE UNIT THESE YEARS RETIREE PERSONNEL SURGE, SHE IS STILL HESITATING WHETHER TO RETIRE UP TO NOW: “I AM DEPUTY HIGH TITLE, PRESS POLICY REGULATION CAN DELAY TO 60 YEARS OLD RETIRE. But now that so many people choose to retire, I haven’t made up my mind.”

In recent years, it has been repeatedly mentioned that China will meet the largest “retirement wave” in history.

The reason why China will form a retirement peak period, in the view of Zhang Shixian, a researcher of the Institute of Industrial Economics of the Chinese Academy of Social Sciences, is because the first population peak period formed since the founding of new China is in the 10 years from 1962 to 1972, and correspondingly, there will be a retirement peak period after 60 years.

As the number of retirees increases, the adequacy of their pensions has become a concern.

At PRESENT OUR COUNTRY HAS FORMED MUTIPLE LEVEL ENDOWMENT INSURANCE SYSTEM, “THE FIRST PILLAR” BASIC ENDOWMENT INSURANCE, MAINLY AIMED AT THE URBAN RETIREES. By 2022, pensions for urban retirees had been raised 18 times in a row. According to a notice on adjusting the basic pension for retirees in 2022 released by the Ministry of Human Resources and Social Security and the Ministry of Finance on May 26, the pension will increase by 4 percent in 2022.

Although the 4% increase is the lowest level in 18 years, Yang Lixiong, deputy director of the China Social Security Research Center at Renmin University of China, said it is not easy to raise the basic pension of urban retirees by 4% this year despite repeated outbreaks and increasing downward pressure on the economy.

“The income of many industries is declining, in order to ensure long-term pension payments, this year’s 4 percent increase is also needed in times of safety.” Yang Lixiong to “China Economic Weekly” reporter expresses.

The average monthly pension for enterprise retirees nationwide was 2,987 yuan in 2021, according to data released by the Ministry of Human Resources and Social Security.

From 2012 to the end of June 2022, the number of people covered by China’s basic pension insurance increased from 790 million to 1.04 billion, an increase of 250 million people in 10 years. Such a large number of enrollees is key to ensuring that pensions are balanced.

On August 25, the Ministry of Human Resources and Social Security endowment insurance director Qi Tao said that in 2021, the enterprise staff basic pension fund income of 4.4 trillion yuan, 4.1 trillion yuan of expenditure, the current income and expenditure overall balance, slightly balance; Since the beginning of this year, the fund has maintained a steady operation, and in the first half of this year, 124 billion yuan was allocated for pension payments in poverty-stricken provinces. After the central government transferred 1.68 trillion yuan of state capital to replenish the National Social Security Fund, the fund still has a strategic reserve of over 2.6 trillion yuan.

“There is no problem with pensions being paid on time and in full.” This is a reassuring message from the Ministry of Human Resources and Social Security. But with an average pension of less than 3,000 yuan, can you maintain your living standard after retirement?


Post time: Nov-25-2022