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China's population
EconomyChina Economy

Young Chinese put retirement plans on hold amid slowing economy, demographic crisis

As China grapples with a rapidly ageing population, Beijing urges employees to plan ahead – but is anybody listening?

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High levels of youth unemployment, a slowing economy and social pressures are just some of the challenges that young Chinese currently face. Photo: VCG
Luna Sunin Beijing

For many young people in China, the government’s call to prepare for retirement decades in advance feels out of touch with reality.

With rising job uncertainty amid a slowing economy, stagnant wages and mounting pressures around housing and marriage, most young employees interviewed by the Post said they were too preoccupied with present circumstances to think about old age – and that retirement was simply too distant to prioritise in a rapidly changing world.
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“There’s no point constantly worrying about the future – I’d rather just focus on living well right now,” said 29-year-old Wu Ruoshi, a public sector worker based in Wuhan.

“Sure, retirement is important, but just thinking about it doesn’t help. It only creates stress. Who knows, maybe I’ll have a robot taking care of me when I’m old anyway.”

In recent years, the Chinese government, along with many academics, have warned of the long-term risks posed by the country’s rapidly ageing population, a trend exacerbated by a strained state pension system.

They have urged young people to begin planning early for retirement, and highlight the importance of the newly expanded personal pension system – a voluntary, supplementary programme aimed at encouraging individuals to build up their retirement savings, as part of broader pension reforms.

Participants have the option of contributing up to 12,000 yuan (US$1,666) annually into designated accounts. The programme offers tax incentives and preferential treatment on investment returns, with withdrawals allowed upon retirement age.

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02:37

‘We saw this coming’: citizens react to China increasing its retirement age

‘We saw this coming’: citizens react to China increasing its retirement age

But only a minority of young workers are keen on planning that far ahead, analysts said.

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