Recently, the Chinese Communist Party’s introduction of delayed retirement has sparked public grievances. Young people, especially those without stable jobs, feel an increased pressure as they see no hope in sight. They believe that delayed retirement is nothing but a money-grabbing scheme by the CCP.
The CCP authorities have begun to implement a so-called gradual delayed retirement plan. Starting from January 1, 2025, the statutory retirement age for male workers will gradually increase from the original 60 years to 63 years, and for female workers, from the original 50 years, 55 years, to 55 years, and 58 years respectively. This process will span 15 years, with retirement age being extended by 1 month every 4 months.
The minimum payment period to receive basic pension will be raised from 15 years to 20 years, with an increase of six months per year.
Netizens expressed their dismay, “Our company exploded today. We had a dinner for Mid-Autumn Festival, but no one had an appetite. The two 95s who just got married said they won’t have children.” “Our people are suffering too much, being squeezed for money again.” “Originally, women needed to pay for 15 years to retire at 55, now they need to pay for 20 years to retire at 58. It’s a pitfall for flexible employment.” “They don’t want to retire themselves, yet won’t let others retire.”
Mr. Sun, a writer from Shenyang, told the reporter that ordinary people dislike the delayed retirement policy because it requires more insurance payments and prolongs retirement. In small cities, everyone hopes to retire early. Therefore, if the authorities rushed to implement this over 3 years, the people would protest.
However, this policy benefits officials, as no one in power wants to retire. Officials at the municipal level will extend retirement by 3 years, and at the provincial and ministerial level by 5 years, while central-level officials will extend by 8 to 10 years. Leaders wish to work a few more years.
Mr. Pan from Inner Mongolia, born in the 70s, said that he still has 5 years until retirement, and the impact will likely only extend his retirement age by less than a year. But younger individuals face significant pressure, especially those who pay for insurance themselves. It’s very difficult for those without stable jobs.
He remarked, “Given the current economic situation in the area, finding a job at 45 is very challenging because the economy is not doing well. Jobs are scarce, with unstable employment and low wages, so the pressure is particularly high.”
According to Mr. Pan, he was laid off in the 90s without any compensation from the government. Before being laid off, companies covered social insurance payments, but after being laid off, individuals had to bear the burden. The annual base for pensions has been gradually increasing, reaching over ten thousand in recent years. Due to the previous healthcare policy where minor illnesses were covered but major ones were not, he gave up health insurance upon being laid off.
There is also a policy by the CCP that affects the pension payments of those who have been sentenced. The portion of social security payments made by the company will be zeroed out. Mr. Pan’s friend was sentenced for rights protection activities, and when he retired at 50, he received a few hundred yuan less per month than others, resulting in a yearly loss of several thousand yuan.
“People who have been harshly sentenced have ten-plus years of their working years reduced. The Communist Party has never seen us as human beings. The Communist Party is a rogue government, a big scam,” he stated.
Ms. Wang from Shanghai told the reporter that paying 20,000 yuan a year for pensions in a first-tier city is a heavy burden. With the average life expectancy in China being only 73 years, paying tens of thousands for 20 years and not knowing if you will receive your pension is a risky situation. Companies mostly cover the costs for employees, leaving those without fixed jobs with a heavy burden.
The pension system in China has always been three-tiered and distributed according to ranks, creating a huge disparity between pensions for retirement within the system, regular enterprise retirements, and rural retirements. Netizens commented, “80% of the pension fund is used to support those retiring within the system, who didn’t pay a penny before retirement but now receive more than others. Though convergence has started in recent years, with more contributions, it’s still government funding, essentially robbing Peter to pay Paul.”
Some netizens expressed frustration, having paid fifteen years of social security or were just two years away from the required 15 years of contributions, and now being asked to continue contributing. “Are we being led to our deaths, especially those who are flexible in re-employment? Are they making it impossible for ordinary people to survive? How much will we receive in the end?” “This is no different from robbery.” “Forget it, I’d rather keep the money for myself; it’s easier to pay than to receive back from others.”
The CCP’s long-standing policies such as family planning, late marriage, and late childbirth have created a retirement dilemma for many only-child families. One netizen stated, “I gave birth to my son at 29. If my child also has a child at 29, when I’m 58, with 7 years to retirement, I can’t care for his child. If I live until 85, my child will be 56, unable to take care of me, as he still has 9 years until retirement. It’s like a mother and son both neglected by each other.”
In a video recording, a netizen mentioned choosing to opt-out of the pension scheme after visiting the social security office. Despite family disagreements, she decided to withdraw, but could only request money back for the months of September, October, November, and December this year. The rest of the contributions will only be returned at retirement age, and only 40% refunded, as 60% has already been utilized for pension distribution.
Laughing at the end of the video, she remarked bumping into many others seeking to withdraw from the pension scheme at the social security office that day.
Chinese dissident Wang Aizhong posted, “Originally meant to save money by delaying payments and collecting for longer. But now, many have chosen to stop contributing altogether, making the already unsustainable pensions even harder to sustain. No matter how they dictate, what can you do? I wouldn’t pay another cent.” He, however, mentioned keeping health insurance.
Mr. Li from Shandong told the reporter, “After the announcement of the delayed retirement policy, many people felt helpless, as if there is no hope left. Many find it difficult to opt-out of pension payments, feeling conflicted. Currently, new accounts must include social insurance, not just medical insurance. Previously established accounts could stick to just medical insurance.”
Ms. Tang, a doctor from Hebei, expressed to the reporter that Chinese people all have the concept of enjoying their later years, hoping that after turning fifty and still being able to walk and stand, they could still enjoy life. This is different from the Japanese view. By the time they reach their sixties, their physical capabilities might not keep up, still hoping to enjoy their later years but end up being overworked. People feel a lack of hope.
Ms. Tang believes that there are significant issues with China’s pension system, leading to the authorities introducing delayed retirement. With the current economic downturn and the lack of institutional support, there are cries of despair, and the future seems increasingly bleak. In cities, those with pensions can afford caretakers and elderly care centers, but for the vast majority living in rural areas, their retirement is not ensured.