Celestial, but not transcendental. Pension in China: is there one, who is entitled to it, size, average in rubles. Do they pay pensions in China or not?

Why did they decide to give pensions in China?

Compared to the rest of the world, pensions were a relatively late arrival in China. At first, only employees of state-owned enterprises received it. Back in 1990, only 5.4% of Chinese could count on retirement. The reason for this was largely that more than 1 billion people already lived in the Celestial Empire, and it was not easy to provide for all the elderly, who made up the lion’s share of the population.

However, the way of life gradually changed. Previously, more than 80% of the population lived in villages, and children and grandchildren usually provided for them. But later the country’s authorities introduced a world-famous fine for the birth of a second or third child as part of the “one family, one child” policy. This meant that parents could no longer rely on their children for support. The old system would condemn millions of elderly citizens to complete poverty in the future. Therefore, pension reform began to be carried out.

An important step was the “Decision of the State Council of the People's Republic of China to establish a unified basic pension system for enterprise employees,” which appeared in 1997. Subsequently, pension coverage was expanded. Currently, about 900 million people are covered by the social insurance system - this includes both pensioners who receive payments and those who are still only making contributions. According to CEIC, among citizens over 60 years of age, out of 230.8 million people, only 152.7 million people currently receive a pension.

At whose expense will the pension be?

Supporting more than 150 million people using budget funds alone is a foolhardy idea. Therefore, the authorities initially created a pension system based on individual labor contracts, under which employers, rather than the state, would have primary responsibility for pensions, unemployment, health insurance, industrial accident insurance, and maternity insurance. The result was the Social Security Law.

The key point of the pension system, unlike others, was the focus not on age, but on work activity.

The new rules stipulated that all workers, including rural workers and migrants, should be covered by the social insurance system.

Both employers and employees are required to contribute (at varying rates) to the Pension, Unemployment Insurance, Health Insurance and Housing Funds. Employers, but not employees, are also required to contribute to work-related injury and maternity insurance funds.

However, many citizens still remain not covered by the pension system. In addition, some employers prefer to pay “raw” or, according to documents, reduce salaries in order to make fewer pension contributions.

How much do they pay for pensions?

Both employees and employers contribute to the pension system. Workers contribute based on their individual wages, up to 8%, while employers contribute a percentage of the total wages paid to their workforce, typically around 20%. But there are also benefits for employers and employees. Reduced contribution rates vary by region. For example, in mid-2016, several provinces and cities, including Beijing, reduced employer contributions from 20% to 19%.

Employee contributions are transferred to a personal account. At retirement, the account balance, including interest, is divided into 120 installments paid monthly over a ten-year period. The part of the pension accumulated in this way can be inherited. In addition to benefits paid from the personal account, the employee also receives general pension payments payable until death. Total pension benefits are determined by the number of years of work, the average salary in the locality and life expectancy. These shared pension benefits are funded by employer contributions, but the government is legally required to cover any shortfall in funds.

Individual entrepreneurs who do not have employees, as well as part-time employees, may (but are not required to) pay contributions to basic pension insurance.

What do you need to receive a pension?

There are two main criteria: age and experience. The established retirement age is 60 years for men, 50 years for women working in enterprises, and 55 years for women civil servants. However, in the future they want to raise the bar, since there may not be enough money from workers for everyone. The average life expectancy of the Chinese is estimated at 75 years, and about 200 million people have already crossed the threshold of 60 years.

Employees become eligible to receive pension benefits when they reach a specified retirement age, but only if they have been participating in this program for at least 15 years. Individuals who have contributed less than 15 years can delay retirement until they have made 15 years of contributions or pay the remaining required contributions themselves in one large payment.

How do China pay pensions to rural residents?

In China, pensions are paid differently to urban and rural residents. The system described above is typical for city dwellers, but for rural residents everything happens differently.

The right to a pension for rural residents appeared only in 2009, although the amounts of payments are still extremely small and insignificant compared to transfers to city residents. Participation in pension provision is voluntary, and operational issues are decided by local authorities. Usually about 10% is deducted from the salary. Benefits are much less generous than the city's pension system - in 2017 it was only 125 yuan, or 10% of the provincial average income. There are no alternative options - the practice of investing pension contributions is extremely conservative: pension money for villagers, for example, can only be put on a one-year deposit in a bank with an extremely low return.

China has a hukou system, which was created to control the movement of the population within the country. It strictly divides the Chinese into city dwellers and rural residents and does not allow villagers to legally work in cities, and therefore count on social insurance. Therefore, labor migrants from villages working in the city cannot count on a normal pension, and this is one of the reasons for discontent among the population.

Is there a pension fund?

The parent organization is called ECNS. General Fund social security consists of five main social insurance programs, including medical care and the unemployment fund. Last year its budget was 7.6 trillion yuan.

The pension fund is responsible for storing citizens' money, but also has the right to buy shares of state-owned companies, which ensures the safety and increase of funds.

However, the system itself is not simple, and for now it is decentralized. Pension contributions are collected by provincial pension funds and health insurance is administered by city funds, leaving regions facing funding shortfalls.

In June this year, Chinese media announced that China will create a centralized system for adjusting basic pension funds for enterprise workers to balance the payment burden of local governments and allocate money more efficiently.

What kind of pensions do the Chinese have?

The cash payments that residents of the Middle Kingdom receive vary greatly depending on the region and salary. The pension paid to the Chinese consists of two parts. The first is 20% of the average monthly salary in a given territory. This part is indexed with the growth of the average monthly salary in a given accounting territory. The second part is cumulative. It is 1/120 of the pension savings saved in an individual account. This part is invested in the bank. The average monthly pension in China in 2016 was about 2,353 yuan (approximately 23.2 thousand rubles). Office employees in the capital with a salary of 10,000 yuan per month after thirty years of service can receive a pension of 3,400 yuan. The highest average pension in Tibet is 4071 yuan, the lowest in the city of Chongqing is 1817 yuan.

Is there additional insurance?

As in Europe, large enterprises offer additional pension insurance programs to their employees.

Are there any benefits for Chinese pensioners?

Contrary to popular belief, Chinese retirees in cities have many benefits. Partial or even complete exemption from utility bills, free travel on public transport, free entry to a number of public places– to museums, parks, gardens. There are special canteens for older people and discount stores. All these benefits are usually established by city administrations.

By the way, just the other day in China a criminal case was opened against all employees of the administration of the four million city of Taiyuan in Shanxi province for plans to carry out “market reform” of urban transport. According to the case materials, they planned to abolish free travel for pensioners and children under 7 years of age, and also intended to reduce the number of unprofitable routes for the sake of “economic optimization.”

What are the problems with the Chinese pension system?

Currently pension system China is stagnating. The main problem was the previously pursued “one family – one child” policy. The number of pensioners is growing, but the number of young workers is not increasing. By 2050, there will be 480 million elderly citizens in China, and the ratio of the working-age population to pensioners will decrease to 2:1 by 2035, according to the Bank of China. The pension fund is facing a huge deficit. Therefore, the authorities are already thinking about raising the retirement age for retirement, but are ready to carry out other reforms. It is planned to eliminate the system of tying citizens to one hukou place of residence, equalize the difference between regional pension budgets and combine urban and rural pension systems. In addition, the Chinese authorities want to encourage workers to retire late.

Economist. More than 15 years of experience in finance. Date: August 27, 2018. Reading time 7 min.

There are 2 pension programs in China: for urban and rural residents. In cities there is a savings system, the average payment is 23 thousand rubles. In the village people get minimum pension from the budget - on average 1.26 thousand rubles. About 20% of Chinese residents do not receive any old-age benefits.

Talk about the absence of pensions in China has long been untrue: over the past 20 years, the country has made a big leap in the development of social protection for citizens. Determining what kind of pension is paid in China today is quite difficult due to the peculiarities of local laws. There are 2 pension programs for different categories of citizens, which differ in the operating mechanism and the amount of payments.

In the PRC there are 2 large social groups: employees of urban organizations and the population employed in agriculture. For this reason, there are 2 pension programs in the country:

• For city residents working for private and government organizations. The program covers 60% of Chinese citizens.
• For rural residents. Approximately 40% of citizens fall into this category, but not all of them receive old-age benefits. Some urban workers who come from the countryside are also considered rural residents.

Previously, there was another type of pension in the country - for civil servants and employees of budgetary organizations. In 2014, the Chinese authorities included this category of citizens in the program for city residents.

The “urban” pension resembles the old-age payment mechanism in Russia, while the “rural” pension works according to completely different principles. Let us consider the main parameters of the Chinese pension system in more detail.

Retirement age

The retirement age for rural residents in China is 60 years. At the same time, for women and men this bar is set at the same level.

For those living in the city, following rules:

• 60 years - for men;
• 55 years - for women working in the civil service;
• 50 years - for women employed in private companies.

This division is very arbitrary. For example, women working in hazardous industries can also retire at age 50. At the same time, high positions in commercial structures are equivalent to civil service.

How is the city pension formed?

The city program is based on a savings system based on contributions from employees and employers. Employees contribute 8% of their salary to their individual account each month. The employer will pay a further 20%, although local authorities can reduce this figure at their discretion. For example, in Beijing the pension tax rate is 19%.

After going on vacation, the accumulated amount is divided into 120 months. This number is based on the life expectancy of Chinese people: in 1997 it was approximately 70 years. Today, Chinese citizens live on average to 76 years, but the principle of sharing savings remains unchanged.

In addition to funds from a personal account, city residents receive a basic payment from the general fund. Its size depends on:

• length of service;
• average salary level in the region;
• life expectancy.

Formally, the basic pension is formed from employers' taxes. In practice, these payments often come from the budget: by law, the state is obliged to compensate for the shortfall. The basic pension is paid even after the person has spent all the funds from the savings account.

How are payments for rural residents formed?

Until 2009, rural residents did not receive any pension and could only rely on the help of their children. The situation changed when the Chinese Communist Party set its sights on building a universal pension system. This is how a program of compulsory old-age payments arose for rural residents and workers who moved from the village to the city.

Even those people who do not have an official place of work can participate in this scheme. The only condition is the payment of a small tax, which forms the pensioner’s personal savings account. However, the Chinese authorities are gradually abandoning this restriction.

Personal savings account for only a small part of old age payments. The main source of funding for the program for rural residents is the regional budget.

Mandatory experience

To receive a city pension, a citizen must have at least 15 years of work experience. If a person does not achieve the minimum length of service before retirement age, he can use one of the following options:

• continue working until you reach 15 years of service;
• switch to a pension program for rural residents;
• withdraw all the money from your savings account along with interest.

For participants in the rural program, length of service does not matter. Farmers and peasants often work unofficially, and the state decided to accommodate this large segment of the population.

Pension amount

Depending on the pension program, the size of monthly old-age payments can differ tens of times. It is quite difficult to directly compare pensions in Russia and China in rubles. Pensioners in Chinese cities receive relatively large amounts of money, while in villages people still survive thanks to the help of their children.

Average, minimum and maximum pensions

Table 1. Amount of old-age benefits in Chinese yuan (CNY) and Russian rubles

As can be seen from the table, pensions for rural residents are still not able to cover even basic human needs. 127 is an insignificant number even by Chinese standards. At the same time, city residents receive a good pension, which is enough for a modest but comfortable life. The largest amount of payments is in Tibet, where pensioners receive 4.1 thousand yuan per month (about 40 thousand rubles).

For comparison, in Russia in 2018 the average pension was 14.1 thousand rubles. At the same time, the cost of living in China is comparable to Russia.

Indexing Rules

Every year, pensions are indexed in accordance with the growth of average salaries in the region. During the years of active growth of the Chinese economy, payments increased by 9-10% every 12 months. Today, the indexation rate is 5-7% per year.

Receipt procedure

The work of pension programs is coordinated by the Ministry of Human Resources and Social Security of the People's Republic of China. To apply for old-age benefits, a Chinese citizen needs 2 documents: a passport and an insurance certificate. It is noteworthy that paper passports have not been used in the country for a long time: their role is played by cards with electronic chips.

The insurance certificate contains the citizen’s individual number, which in its purpose is similar to the Russian SNILS. Since 2018, the document can be either paper or electronic.

Results and prospects

Since 1997, the Chinese authorities have pursued a consistent policy of increasing pensions. It is planned that by 2020 existing programs will cover 100% of the country's population. Today this figure is approximately 80%: a significant part of farmers and peasants still remains outside the system.

A positive consequence of increasing pensions in China is an increase in domestic consumption. The more money people have, the more actively they spend it on purchasing goods and services. Today, domestic consumption accounts for 58% of the growth of the Chinese economy. Thus, increasing the well-being of Chinese pensioners is in the long-term interests of the state.

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The demographic statistics of the People's Republic of China are such that the number of elderly people is growing steadily. According to international standards adopted by the UN, if the share of elderly citizens over 65 years of age exceeds the threshold of 7%, and the number of people under 14 years of age exceeds less than 30%, the population of the country in question can be called old.

According to the latest estimates, there are already more than 170 million elderly people in China. Approximately 13% of Chinese are classified as elderly. Currently, the PRC is experiencing an intensification of the process of general aging of the population, despite the fact that the government is taking measures aimed at balancing the birth rate. A large number of elderly people entails the need for the state to fulfill its social obligations to the pensioner.

Current situation in China

The pace of aging in the People's Republic of China is rapid, but the same figure for the number of able-bodied people is much lower. In 2015, the problem of aging forced China's legislature to lift a previous general ban on the birth of a second child in a family. With this measure, the authorities hope to partially reduce the severity of the problem by the time children reach working age and can work and pay taxes.

But even taking into account the lifting of the ban, demographic growth will ensure an influx of taxpayers only in 15 years, when new millions of Chinese reach retirement age, which will not completely solve the problem.

Feature pension provision In China, it is a tradition for children to take care of their own parents. In addition, even after reaching retirement age, not all citizens in China begin to receive payments from the state.

According to the current pension system, only 55% of all Chinese can count on receiving monthly transfers: the law limits not only the age of pensioners, but also categories of employment. Funds allocated to future pensions can be used by the state to make a profit.

Another disappointing rule is that the law does not provide benefits for pensioners in China.

Amounts of pension payments and contributions

Despite the fact that China's economy has developed significantly over the past three decades, the issue of pension contributions still remains relevant. It is quite difficult to determine the average pension in China, due to significant differences between different regions, as well as differences in regional laws.

The amount of the old-age pension for each region differs and corresponds to 1/5 of the average earnings paid in a particular city, and 1/10 of the average earnings in rural areas. In addition, during his work, a citizen contributes to his personal pension account cash, which then goes towards an additional payment of 60% of the average salary in the region. This payment is subject to indexation in terms of inflation. Funds transferred by the Chinese to their own account are accumulated in the Chinese Pension Fund, aimed at preserving and extracting additional profit from the amounts entrusted to it. The State Fund has the authority to invest in the purchase of various securities of Chinese enterprises.

The lack of a uniform rate for payments has led to significant differences between pensions in neighboring regions. The availability of a pension in China and its size depend on the following parameters:

1. Place of residence (City or rural area).
2. Place of work (State or private enterprise).
3. Age of the citizen (reaching the appropriate age).

For citizens living in rural areas, the process of paying pensions is new. The right to a pension for rural residents appeared only in 2009, although the amounts of payments are extremely small and insignificant compared to transfers to city residents. If a rural pensioner receives no more than one hundred yuan, then city residents receive up to one and a half to two thousand yuan. It is of great importance which region the pensioner belongs to.

Budget employees do not have to worry about their deductions; all deductions are made by the state, and the amount of the monthly payment is correlated with the salary of public sector employees.

If a citizen works in a commercial structure, payments to the Pension Fund are made in the following order:

• The employee deducts 7-8% of his monthly earnings;
• The employer contributes 3-4% to the fund at the expense of the employer.

In some regions of China, the pension amount is formed at enterprises where the employees themselves accumulate savings for their future old age. In the future, the organization pays them pensions based on the amount collected during their work.

Who is entitled to a pension?

In order to receive a pension in China, several parameters must be met:

1. Age appropriate.
2. Working experience of 15 years.
3. Availability of contributions to the Chinese Pension Fund.

Depending on gender and type of employment, the age threshold differs:

• The age of a male pensioner must be at least 60 years;
• administrative workers have the right to a pension upon reaching 55 years of age;
• When engaged in manual labor, the age of women retiring is reduced to 50 years.

These age restrictions were established 50 years ago and have not yet changed. Given that the average life expectancy in China has increased significantly since then, the number of pensioners has increased, and the state has increased the financial burden of providing social security to its aging citizens. Considering that the life expectancy of the Chinese has reached 75 years for men and 73 years for women, the issue of increasing the retirement age threshold is ripe.

The Ministry of Labor of the People's Republic of China is taking steps to introduce a program to gradually increase the retirement period. This program is designed for 30 years; by the end of 2045, the retirement age is expected to be set at 65 years.

With regard to the period of work, the state makes a requirement - a Chinese person applying for a pension from the state must work for at least 15 years at the enterprise, and also contribute a total amount of 11% of monthly earnings to the state fund towards a future pension.

In order to make tax deductions, the employer does not ask the employee for permission, but does it independently and unilaterally. The regional legislation of individual areas provides for the possibility of using their own pension savings systems, from which pensions will then be paid. These funds are organized by the enterprises themselves where citizens work.

Problems of the Chinese system

The peculiarity of China's pension system is closely related to the consequences of the reform that has been implemented in the country for many years. According to the law, each Chinese family has the right to have only one child, and only as an exception was it allowed to have two children, subject to certain conditions:

• The parents of the second child had to be the only children, i.e. have no brothers or sisters;
• the second child could be born only when the first baby was 4 years old;
• a second child was allowed in rural families;
• the restriction on the number of children did not apply to families of representatives of small nationalities (their share of the total number of citizens should not exceed one tenth).

These measures were supposed to protect against hunger and alleviate the acute problem of shortage of natural resources in a situation of rapid growth in the number of Chinese people. Over time, the rate of growth became less of a pressing issue, and the aging of the nation took center stage.

Another negative consequence of this reform lies in the violation of Chinese principles - in a family, grown-up children were obliged to support their elderly parents. One of the basic rules was violated: the main responsibility of children is to help their parents. A modern Chinese family with one child can hardly expect that their grown child will be able to provide for them. The financial burden can be overwhelming. Under these conditions, state assistance in retirement is one of the most important for the vast majority of the country's population.

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 how pensioners in China live, where they get the money to travel, and whether 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 basic pension system 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 funding pensions - for example, through the National Social Security Fund. 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 spread 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 Uygur 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 by 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 for parents nearby. Moreover, there are social forms of renting housing for older people. But not everyone wants to move. In the south of China, I discovered a giant settlement in barracks where dozens of elderly people live. They explained to me that they are simply used to living like this. , and the money that the 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 rooms that are equipped in each district, the right to eat in public canteens for a symbolic fee - upon registration, free visits to museums and qigong and tai chi classes in the parks. The demands of Chinese pensioners are small. And benefits from travel agencies allow them to travel around the world. No wonder Chinese pensioners in Lately can be seen 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 the country’s pension fund and an increase in 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 there is an old person in the house, then 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.

In 2017, there were more than 200 million elderly people living in China. The Chinese authorities do not have time to make adjustments to the pension system due to the active aging of the population, so the majority of elderly Chinese are on the verge of poverty. But why did this happen? We will answer this question in our material.

Do the Chinese receive a pension?

According to the latest statistics, Every fourth Chinese person receives a pension..

Let's highlight basic conditions to receive a pension:

• The age of men is 60 years, for women – 55 years.
• The age of women who do physical work is 50 years.
• Experience – from 15 years.
• Labor activity at a state or industrial enterprise.
• Conducting private entrepreneurship.

As a result, only a portion of China's population receives pension contributions. And if it is paid, it is within the minimum criteria. For example, citizens are paid in the amount of 20% of the salary, and residents of rural settlements receive a pension of 10% of their earnings.

Since federal funds are not intended for pensioners, the Chinese make independent contributions to the Pension Fund (PF) in the amount of 8% of wages. In addition, the employer pays 3% tax for each employee.

The main problem of China is the implementation of illiterate policies to reduce the birth rate since the early 70s. Currently, there has been a sharp decline in the birth rate and active aging of the population.

In addition, according to Chinese traditions, older people living in rural areas are under the care of the younger generation. This tradition has always contributed to strengthening family ties. Currently, most young families continue to care for elderly parents.

As a result, not all Chinese pensioners receive a pension, which does not reach the country's subsistence level. Consequently, the pension system does not correspond to the current level of economic development in China.

How do they live in China without a pension?

Most Chinese pensioners do not worry about the lack of pension contributions, since traditions in this country play a more significant role than proceedings regarding the lack of pension payments.

For the Chinese, the retirement period- this is the time when the soul sings, because it is now free from previous everyday worries.

Therefore, when they retire, most Chinese people engage not only in establishing relationships with relatives, but also in all sorts of hobbies, for example, the Chinese love to dance in the evenings. And the younger generation is in charge of financial support.

Who receives pension payments?

On state The following categories of citizens can receive a pension:

• officials;
• managers;
• persons working in industrial production;
• private entrepreneurs;
• residents of rural settlements receive pension payments in the amount of 10% of wages.

In some regions of China, future pension is saved in the accounts of the enterprise, which subsequently pays a pension to the former employee.

Average pension size

China has not set minimum pension contributions because the country has an ineffective pension reform that requires fundamental changes.

According to statistical indicators, lowest pension amount residents of rural settlements receive - 50-100 yuan (in rubles – 1000 rubles).

The average state pension in cities is 1,500 yuan. In rubles – 14,000 rubles.

Eventually average pension payment rates across the country are equal 900-1300 yuan (5000-9000 rubles).

About how Chinese pensioners live and what they do, watch the video.

The Chinese authorities plan to modernize in the near future pension reform so that all citizens can receive pension payments. Currently, only 60% of the population receives a state pension.