Hello, dear readers! Recently, there has been a lot of criticism of the Russian pension system - they say it’s such a country, but everything is worse than in the world. On the other hand, many of our regular residents were interested in another problem - what about pensions in other countries now? Let's start with, perhaps, the most populous country in the world and find out what is happening with pensions in China.
Why China?
Many will not agree that everything is bad in Russia, but in China it’s even worse, why compare these two systems. I dare to disagree. To understand the possible picture, the example is more than successful. Especially the developed countries we'll discuss later.
What we know about China:
- Largest population in the world.
- World Manufacturing Center.
- One of the fastest growing countries in the 3rd world.
- Ancient centuries-old culture and original traditions.
Perhaps that's enough, now let's get straight to pensions.
Is there a pension and who is entitled to it?
There is a pension in China, but not for everyone. No matter how comical it may sound, there is some tragedy in this. This is because demographic reforms and economic development in the country were unable to create a unified pension system in the country. And the strict division of the country into urban and agricultural workers with corresponding differences in the laws of the provinces - all this created a number of problems.
A few facts about pensions in China:
- Responsible government body – labor bureau and social protection. But in some provinces, enterprises that independently accumulate pension accruals at home for its retired employees.
- The retirement age for men is 60 years. Women - 50-55 years old, depending on working conditions and province. Usually the average is 55 years for cities, 50 years for rural areas.
- Previously, old-age pensions in China were only available to those who had worked for public service or industrial production for at least 15 years. Modern reforms are expanding the number of categories of pensioners, and even peasants can receive their payments.
- Approximately 55% of the population is eligible for payments.
Pension size in China
A little preliminary information for comparison with us. WITH wages workers today withhold contributions - 11%. Of these, 7% are from the enterprise, 4% are from the future pensioner himself. For comparison with Russia, in our country only the Pension Fund retains 22%, entirely from the employer’s pocket. Those. you easily receive your salary, and the employer pays contributions 2 times more than in China. But our salaries are not lower. Already the first bell. And we all have pensions in one way or another. Small? Read on.
And here is the approximate ratio of pensions to salaries in China:
- City residents end up with about 20% of their previous salary. In addition, there are bonus systems of allowances that slightly increase this amount.
- Rural residents usually do not have more than 10%, because they do not receive pension contributions. Comparable with our pensioners who have no work experience. Only here people worked honestly, but due to the lack of a developed pension system in China, they were either left completely without security or were content with pennies.
How much is this for ours? Like that:
- For rural regions - from 50 yuan per month, on average about 100. At the current exchange rate in rubles: 500-1000 per month. Cheered up?
- For city residents – 800-1500 yuan (8000-14000 rubles).
If you are satisfied with the amount of 14,000 rubles per month, then you need to understand that this is not for everyone. The same as with us, because some people receive pensions of up to 100,000 rubles a month. Of course, it would be possible to express some kind of general average pension, but the spread is enormous, so the above average pensions by category are quite relevant. Is that the case with you?
And in China, pensioners are not singled out in any way; additional benefits are not provided for them. Do you want to go there again?
Why is that?
Of course, this may be a strategic move by the Chinese government that will take China to a new level, but from the outside it looks terrible. And the reason for this is past government reforms in the field of demography.
Remember what we were taught: in China there is a strict ban on children, only 1 child per family, for the rest there are fines. We were presented with this information something like this. And now it turns out that people have retired, the younger generation, which is supposed to provide for the elderly in the system, simply cannot cope with the assigned obligations. And as a result, there is not enough money for everyone, and the economy has not yet reached the desired level - but perhaps everything will get better later.
Thus, we get a country of pensioners with a pronounced demographic problem. In addition, the demographic profile gives a terrible picture: in the country, for every 6 boys there are only 5 girls. This is how they live - one of the bells of future instability in society.
What's next?
In the meantime, no changes are being introduced. And if the situation continues in the future, per 1 citizen retirement age there will be no more than 2 workers. Those. 2 people will somehow have to fully provide for the pensioner. And it is unlikely that it will be possible to return to the old traditions of caring for an elderly person in this situation.
In this regard, there are rumors that the Chinese government is going to raise the retirement age by 5 years. In Russia, by the way, the retirement age is also being increased by the same 5 years. But in our case, everything still looks a little rosier.
What about people? And according to the stories, people in the country are even more interesting than ours: ours only verbally express criticism of the pension system, but there everyone prefers to keep their savings as close to themselves as possible, not trusting them either to the state or to the bank. And if there is no income, then who should pay and where? Those. some don't pay, others don't receive. There is a similar trick in Russia with “black” salaries and a “white” future.
How to live without a pension?
In Russia it’s just scary to be completely without funds. Remember, we talked about traditions above. Basically, the people of China honor them, and most importantly, according to them, they honor and care for their older generation. Those. For the most part, everything is fine with this - no one will forget the elderly, they will provide everything possible, despite the state position.
Asian contrast - Japan
Let's touch a little on another Asian island state - Japan. Just for general comparison:
- The retirement age is 65 for both sexes. But life expectancy here is one of the maximum - they live more than 80 years.
- Everyone who has reached the age has the right to a pension.
- The minimum pension is about $600.
These points will be enough to understand where a competent pension system was introduced, and where it was not and is not.
In almost all countries of the world, authorities are concerned that their elderly citizens can receive pension payments and count on all sorts of benefits and allowances. But it’s difficult to compare how Russians live in old age and pensioners in China, since in the latter case, even in 2020, many Chinese do not receive it at all and they have to rely on their grown children or get out in other ways.
Everyone needs to know about these points, especially if they have the desire.
How it works pension reform in the PRC today, and what is the old-age pension in China for different segments of the population?
In general, in China, depending on the region, unlike, for example, the old-age pension can have different sizes, the same applies to the place of work and residence. Urban residents, for example, receive payments in the amount of 20% of the average salary in the region or province, while the rural population can count on payment of no more than 10%. This is due to the fact that the rural worker does not pay any contributions and, as a result, has no labor part pension payments. The pension amount may depend on various factors, For example:
- region of residence and implementation labor activity;
- work experience (at least 15 years);
- professions;
- average salary level.
There may be other factors that affect pensions in the future, since there is no general pension throughout the country, so it is difficult to say what the average pension in China is. These figures can range from 600 to 1500 yuan, in some cases as low as 50-odd yuan. As for preferential categories and allowances, this is not provided for pensioners in the country.
Pension crisis
Today, China's pension system is in a difficult situation, this is largely due to the once-promoted political doctrine of “one child per family.” And because, on average, the life expectancy of Chinese people in the country has increased.
It is impossible to even compare how many of the population are Russian pensioners in Russia and Chinese in their homeland, because there are already more of them than the entire population of the Russian Federation combined, and so far there are more and more of them every year. Thus, the Chinese nation is aging, and this puts great pressure on the economy, because each young employee makes pension contributions, which are distributed among several people.
Expert forecasts agree that by mid-century there will be fewer than two able-bodied Chinese per pensioner, so the authorities are considering increasing the retirement age by five years. But there is another reason that complicates the situation with pensions: the Chinese are distrustful of all kinds of funds.
The population prefers to keep savings at home, despite the fact that there are fines for this and constant monitoring is carried out. Many organizations also try by all means to hide their full income from the authorities. All this has led to pension funds losing billions of money every year.
There is also a problem in the work of government agencies dealing with pension issues, as the number of people retiring in China is steadily increasing. They do not have time to cope with such a quantity, so the authorities are also planning to carry out reforms in this sector.
Those over 65 exceed the number of residents of Russia. This figure is steadily increasing, as the aging trend proceeds at such a pace that it can be stunning. The government has abolished birth control since 2015 in order to prevent the threat in the future. Families were allowed two children, maybe this will partially smooth out the problem. Teenagers will become a working population in 14-15 years. During the same time, millions of citizens will become elderly.
They have it like that
Is there a pension in China? For the established category, despite the rise in living standards in the country. The coverage of additional payments to citizens is stagnant - no progress. This is available to staff officials and employees of the state industrial sector. The village has been provided with food since the beginning of 2009. There are many elderly people in China. It is customary here for children to take care of their parents. Pensions in China are available to the public sector and cover 55% of the population, so this is not a burden for the country. The size of the pension in China reaches 900-1360 yuan. The state fund “spins” money to make a profit. Pensioners have no benefits.
The age for going on holiday in China is similar to Russia. Necessary seniority is 15 years.
Trying to change the situation
The social unit planning program called “Family - One Child” failed miserably. The consequences of the experiments are sad: the complete aging of citizens. This policy was used to prevent famine.
In the city, two children were allowed in cases where the parents were the only ones in the families. In rural areas, the second one was also allowed if the first one was a girl. Growth dropped sharply, but increased new problem- no one to care for the elderly. It is difficult to take care of parents: not everyone can support a family and the elderly.
This is the sad ending to an ill-conceived experiment that began in 1978. “Laboratory work” created an overabundance of elderly people, a breakdown in the gender ratio: for 6 boys - 5 girls. This is a warning sign. An excess of young men is a factor of social instability. There are already 24 million single men in their forties. The birth rate is falling. Old age in the Middle Kingdom came before wealth came.
Looking for the right solution
We have already found out whether there is an old-age pension in China. The age threshold for both sexes is planned to be raised to 65 years by 2030. For those who worked in hazardous industries, this age will be lower. It is planned to reform pension savings so that older people have time to save capital for a rainy day and retire ahead of schedule. It's harsh, but there's nothing you can do about it. The crisis in society is obvious: a slide into a “grandfather group.”
In 2018, there will already be 300 million old people in the state. China is unlikely to reach the one and a half billion mark. GDP per capita has still not reached the level of 1 thousand dollars. Therefore, pension reform has become a time bomb for the economy. This is a threat to increased unemployment. There are many young people in China with higher education, and they are waiting for wise comrades to free up jobs.
Dead end
The elderly will work hard, since their “final” age has not yet arrived. Such a distortion will also have a disastrous effect on the change of political elites, because the youth have been ordered to rise to the top. In China they understand this, but they are postponing the solution to the problem. The setting for one child per family continues to work. Soon, cheap and abundant labor will cease to be an advantage of the state.
Beijing is deliberately turning a blind eye to the demographic catastrophe of its descendants with an increase in the retirement age. They predict that the Celestial Empire will become a superpower in the 21st century. Correct answer: China will not be one, even a middle-class country, unless it comes up with a way out. The main problem of this state is the sharp increase in the number of elderly citizens.
Who will inspect the elderly?
Pensions in China are paid, but selectively. Financial assistance is provided to disabled people. Those who were born in the 50s, when the birth rate was breaking records, go on vacation and become old. The burden falls on the shoulders of those born in the 70s, when reproduction was placed under strict control. China has become the world leader in the number of pensioners: at the end of 2013, the number of old people exceeded 150 million people.
The consequences of the birth control policy were unemployment, hopelessness, and the standard of living dropped sharply. This is against the backdrop of gigantic defense spending. The country's resources are unable to ensure the existence of citizens of a billion people. In the early 80s, the country embarked on the path of economic transformation and achieved success.
Rely only on yourself
It turned out to be an interesting situation: the birth rate was falling, and the country’s economy was gaining momentum. Experts agree that the retirement age will have to be raised; the number of working people is steadily decreasing.
The problem of “aging nations” and rising unemployment is not new; more than one country has gone through this. This is problem number one for China. Until the early 2000s, the usual “growth” of pensioners was 2 million people annually. After 2003, this figure is 3.3. Traditionally in China, relatives looked after the elderly, and the burden of care fell on them. Today, the number of young people has dropped sharply, and caring for the elderly is problematic. There are currently 4 able-bodied citizens per pensioner, but in 2050 it will be 1.6. State structures folded under the pressure.
The state is looking for a way out
The problem is being solved, samples are being made and tests are being carried out. Successful, Liaoning's pension system did not pay off for long. This is an early 2000s pension conversion project. The results were satisfying and became a prototype of the profitable service of our day. Decentralization has reduced corruption: decisions are made by local and regional authorities, not the government. Geographical reference and differences in budgets at the provincial level are subject to restoration. Life expectancy in China is 73 years and 5 months.
The pension program will continue to be improved. This is a painstaking process. Here the first violin is government regulation. There is one pension in the city and in the countryside. This will reduce the level of payments by category and strengthen sustainability. Peasants will buy industrial goods and spend on themselves in addition to saving for a rainy day.
Good decision
This reform frees workers from being tied to a specific location. Now he is free to search for income. It is important for rural residents to develop subsidiary farming; previously, peasants subsisted by trading crops from their plots. You won't earn much from this. The money was put aside and lay unclaimed. Now that they receive payments, they buy industrial products and small-scale mechanization equipment. What is the pension in China? There is no clear answer yet.
During the crisis, experts realized: foreign markets have narrowed, but demand within the state is enormous. That is why it was decided to cover the peasantry with income payments. Better late than doing nothing.
Today, China’s pension machine “eats” up to 40% of the state budget. It is predicted that only two people will work for one elderly person.
Old age is inevitable, you won’t go anywhere, you shouldn’t be afraid. Numerous relatives and friends will support. Old-age pensions still exist in China, x ot and small.
How the pension system works in modern China
A misconception is often repeated about China that pensions are not paid in the Middle Kingdom. It is a myth. Another thing is that the Chinese pension system, aimed at covering all categories of citizens, and not the privileged layer of “old Bolsheviks,” began to take shape relatively recently - from the mid-nineties. RG found out what pensioners in China live on, where they get the money to travel, and whether their children continue to take care of their elderly parents as Confucius bequeathed.
Rely on your son
Just twenty years ago, the Chinese had to rely exclusively on their children in old age, which was not easy under the previous “one family, one child” policy. Therefore, in villages, they often tried to circumvent the state ban on the birth of a second and even third child: fines from poor peasants were still not collected, the offspring grew up like grass in a field, and then began to support their parents. But if back in the eighties, urban residents made up about 20 percent of the PRC population, today this figure is approaching 60 percent. These changes forced the government to reconsider its pension policy. The reform began in 1997 - then the State Council of the People's Republic of China made a fundamental decision to introduce a system basic pension for employees of state-owned enterprises. Today, men stop working at the age of 60, women - from 50 or 55 years, depending on the type of employment in production or in the office. And these figures are in line with the average retirement threshold across Asia.
In China, there are three types of pensions, Alexey Maslov, Doctor of Historical Sciences, Professor, Head of the School of Oriental Studies at the National Research University Higher School of Economics, told RG. The most common pension is generally similar to ours - it is formed from citizen contributions in the form of deductions from salary. The employee transfers 8 percent of the amount to the pension fund, and another 20 percent - his employer. In addition, each person can open their own savings account. There are other additional mechanisms for financing pensions - for example, through the National Fund social security. The second type of pension is received by officials - they are paid extra by the state. Several years ago, civil servants who left work at a certain age lived off the state treasury. But after a wave of protests broke out on the Internet, their pension income also began to be formed largely through contributions. Finally, peasants who do not have a special income, as well as unemployed urban residents, receive a minimum allowance from the state. Today it averages 600-700 yuan (about 5600-6500 rubles) across the country, but in some places it already reaches 1200 yuan (11,200 rubles). Pension funds in China are formed at the regional level. The difference in pensions for residents of relatively prosperous Shanghai and the poor Xinjiang Uyghur Autonomous Region can be eightfold. If we talk about the average ordinary - not "collective farm" - pension, then, according to calculations for 2018, it is approximately 2,550 yuan (23,700 rubles).
Old age is a joy
“Since the standard of living and pensions in the regions are different, an interesting trend has emerged: many old people registered in one province tend to move either to the south, where it is warm and cheap, or, conversely, to the interior of the country, where there are serious tax breaks. And pensions they receive it based on their registration,” says the sinologist. At the same time, according to Alexei Maslov, over the past two or three years, nursing homes have begun to appear in China almost on the Western model, where social workers take care of pensioners at a quite decent level instead of their own children, who do not have such an opportunity.
“Traditional values are gradually being destroyed,” notes the head of the HSE School of Oriental Studies. “Although, of course, children continue to support their parents. Mostly they send money to the village, but often they transport mothers and fathers to the city. They can live together in the old fashioned way, or they can rent an apartment nearby for parents, especially since they work for older people. social forms rental housing. But not everyone wants to move. In southern China, I discovered a gigantic barracks settlement where dozens of elderly people live. They explained to me that they are simply used to living like this, and the money that their children send them is quite enough." In addition, Chinese pensioners enjoy many benefits: they are provided with free medical care (including various types of acupuncture and massage), visits to diagnostic offices that are equipped in each district, the right to eat in public canteens for a nominal fee - upon registration, free visits to museums and qigong and tai chi classes in parks. The demands of Chinese pensioners are small, and benefits from travel agencies allow them to travel around the world. Recently, you can see them abroad no less often than Japanese ones.
Age debate
“The aging of China’s population is happening faster than pension funds are growing,” explains Alexey Maslov. “It is expected that in 2050 the army of unemployed citizens over 60 years of age will amount to almost 335 million people. Even earlier - by 2030 - the pension fund’s debt to them will reach several billions of dollars, this is officially recognized." So is it inevitable to raise the retirement age in China? The first discussions began about three years ago. There were rumors that the bar for all residents of the Middle Kingdom - both men and women - would be raised to 65 years. However, many experts believe that an increase will not happen. “China is terribly afraid of unemployment,” recalls RG’s interlocutor. “Now it is decreasing precisely due to the fact that people are retiring early. Officially, its level does not exceed 4 percent, but hidden unemployment is much higher. We must not forget that China Basically, it continues to live due to the extensive development of the workforce. If in Germany there are 4-5 people per unit of robotics, then in China - 10 thousand! But the situation is gradually changing, and with structural reforms, unemployment may increase. On the other hand, these same reforms in the economy will lead to an increase in money in pension fund country and increasing pensions."
Verbatim
So said Confucius
The teacher said: “At fifteen I turned my thoughts to study. At thirty I gained independence. At forty I freed myself from doubts. At fifty I knew the will of heaven. At sixty I learned to distinguish truth from falsehood. At seventy I began to follow the desires of my heart."
The teacher was asked about respect for parents. He replied: “Today, respect for parents is called keeping them. But people also keep dogs and horses. If you don’t honor your parents, then how will the attitude towards them differ from the attitude towards dogs and horses?”
While your parents are alive, don't go far.
From the book "Lun Yu" "Conversations and Judgments", compiled by students of Confucius.
Chinese proverbs about old age and filial duty
Go to bed hungry yourself, and feed the elders under your roof.
If the house has an old man, which means there is a jewel in the house.
If small reserves of rice bran are made, then the old and young live in prosperity and good health.
