With the social insurance sector, a government proposal asking people to extend their retirement age and draw pensions later has sent China into a nationwide debate. But the nation's rapidly aging population demands some sort of change.
China's quickly-aging society is putting considerable strain on a social insurance and welfare system still in its infancy. The country's pension authorities are looking at pushing back the retirement age as a solution. But the proposal has created division within the population.
Li Xuefen, pensioner, said, "I think it's a good idea to rise the retirement age, because China is aging quickly, which puts too much pressure on young people's shoulders."
Xue Shuqing, IT firm employee, said, "To be frank, I'm against it. Extending the working age is a threat to older people’s health. They should spend their time relaxing."
Some say young people today are already bearing the brunt of rising unemployment. More workers staying in their jobs mean fewer opportunities for others.
Rao Zidan, college student, said, "I understand the proposal to delay retirement, but the pressure of finding a job is huge and I hope the government can create more employment opportunities for college graduates."
According to a joint study by the Bank of China and Deutsche Bank, China is expected to see a shortfall of about 18 trillion yuan in pension funds by 2013 and over 68 trillion yuan by 2033. That’s 40 percent of the country’s estimated GDP.
And if everyone in China works one extra year, pension funds are expected to be boosted by more than 4 billion yuan. Currently, the retirement age in China is 60 for man, 55 for female civil servants and 50 for other women. Experts say a more flexible retirement system would be a better solution to the issue.
Wu Ying, Asst. Research Fellow, Nat'l Inst. For Social Dev't, CASS, said, "A flexible retirement scheme is necessary. Different sectors have different working requirements. To fix a certain age in one go might have negative effects. It is better to proceed gradually and flexibly to reduce the impact."
China is expected to see a surge of pension claims in the coming years. That, coupled with longer lifespan spells great financial pressure.