With an average increase of 8 million retirees each year, the social security system is facing severe pressure. (Image source: AFP/AFP via Getty Images)
[See China News on July 3, 2021](See a comprehensive report by Chinese reporter Ding Xiaoyu) China’sretirementThe peak is coming.During the next five-year plan of the Chinese Communist Party, the “14th Five-Year Plan” period, the number of new retirees will exceed 40 million.populationA net decrease of 35 million people. During this period, an average of 8 million retirees were added each year, far more than the 4.52 million newly added in 2020.Social SecurityThe system is under severe pressure.
According to a report by China Business News, recently, the Ministry of Human Resources and Social Security of the Communist Party of China issued the “14th Five-Year Plan” for the Development of Human Resources and Social Security. The plan clearly stated that the aging of the population will continue to deepen and new retirements during the “14th Five-Year Plan” The number will exceed 40 million, and the working-age population will decrease by 35 million. The sustainable development of the social security system is facing challenges. This means that during the “14th Five-Year Plan” period, China will increase an average of 8 million retirees every year, far more than the 4.52 million newly added in 2020.
The “Third Pillar and Pension Research Report” released by Tsinghua University is calculated based on the seventh census data. According to the international standard that 14% of the population over the age of 65 enters a deeply aging society, it is expected that by the end of this year, 2021, China will Entering a deeply aging society, this will be 4 years ahead of the 2025 estimated by the 2019 edition of the World Population Outlook.
Zhang Yi, a researcher at the School of Public Economics and Management of Shanghai University of Finance and Economics, said that aging is a “gray rhino” and its influence is gradually increasing. In the future, some powerful tools to alleviate the impact of aging, such as delaying the retirement age, increasing the payment period, etc., can effectively alleviate the impact of aging after the appropriate policy window period is activated.
The plan issued by the Ministry of Human Resources and Social Security mentioned that in improving the social security system, in accordance with the principles of small-step adjustment, flexible implementation, classified promotion, and overall consideration, the gradual delay of the legal retirement age will be implemented steadily, and the basic pension will be gradually increased. Minimum payment period.
At present, despite the fierce opposition from the society, delaying retirement is basically a certainty. Regarding another “weapon”, gradually increasing the minimum payment period for receiving basic pensions, Zhang Yi said that this reform is more important than delaying retirement, and its priority is higher than delaying retirement. Now we must start to emphasize lifetime payment, otherwise the system will not be incentive.
Zhang Yi said: “The difficulty of increasing the payment period is similar to raising the retirement age. For older workers with unstable employment, most of the social security is paid by themselves. Increasing the payment period will damage their interests. Therefore, we must also pay attention. The pace should be gradually increased, for example by 0.5 years every year. Of course, the pace can and should be slightly faster than the retirement age.”
In China, unemployment has a good name, called “flexible employment.” According to a report by China Business News, there are currently as many as 200 million people in flexible employment in China, accounting for about half of urban employees. However, this part of the population is unable to pay social insurance because they have no unit and no fixed income, which “has a great challenge to the social insurance plan based on labor relations.”
The plan proposes to increase the basic pension insurance participation rate from 91% in 2020 to 95% at the end of the “14th Five-Year Plan” period. It is crucial to increase the participation rate of “flexible employees”. It is necessary to liberalize the household registration restrictions for “flexible employment” personnel to participate in social insurance, and actively promote willing and able to pay “flexible employment” personnel, as well as new employment forms of employees, to participate in the basic pension insurance for enterprise employees.
Editor in charge: Jingxin Source: Look at China
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