The first pension system in China began to appear in the early years of Mao Zedong's reign - in the 1950s. The Chinese communists even promoted it as one of their achievements, along with the introduction of universal primary education and industrialization. But from then until the 1990s, very few Chinese elderly actually received pensions - about 5.4%, mostly employees of government agencies and state-owned enterprises. The aged peasants, and peasants then made up the majority of the country's population, could not count on a pension. Here one can involuntarily draw a parallel - after all, the USSR had a similar system for most of its history: former collective farmers could, at best, count on only a purely symbolic “collective farm” pension, the size of which was several times less than in the cities. And in the USSR, until the 1960s, peasants also made up the majority of the population.

But “since 1995, China gradually began to introduce a pay-as-you-go pension insurance system, when the employee and his employer make payments to the pension fund throughout his career. - According to these rules, pensioners with more than 40 years of work experience were entitled to payments in the amount of approximately 25 % of the average salary in the region of their residence. The pension system more or less finally took shape in 1997, when the “Decision of the State Council of the People's Republic of China to establish a unified system” was adopted. basic pension for enterprise employees."

Currently, the pension system in China mainly consists of two components. The first part is the basic pension: it depends on how many years the employee has been paying pension contributions (must be at least 15 years), and is calculated based on the average salary in the province, taking into account indexation. The second part, the accumulative part, is contributions to the pension fund, which are paid by the employee and the employer (8% and 20% of the salary, respectively)."

The most interesting thing is the size of the current Chinese pension. On average in China, as of today, it is already 2,353 yuan - 23,200 in ruble terms. Let's compare - in Russia the average pension is about 14,000. At the same time, residents of provinces with severe natural conditions receive even more - up to 4071 yuan on average in Tibet. In Chongqing, old people are paid 1817 yuan (the lowest pension in China), but this is much more serious than most average Russian pensions.

True, not everyone still receives a pension, but not 5.4% as under Mao - out of 230.8 million Chinese over 60 years old there are already 152.7 million people, i.e. majority. In China, unfortunately, they still continue to effectively discriminate against rural residents.

“This difference is associated with the specific registration system in China, hukou, 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, it is mainly city dwellers who receive pensions, while the rural population (which in 2016 accounted for 43.2% of the PRC population) in old age often has to rely on themselves or on a minimum basic pension. In 2017, the amount of payments to peasants was a ridiculous amount of 125 yuan.

An interesting group is represented by migrant workers from rural areas (in 2017 there were 286 million of them in China): having a rural registration and working all their lives in the city, they still cannot count on city ​​pension and strive to save as much money as possible for old age and for the education of children. These people are among the least protected in China and a serious source of social discontent and headaches for the authorities."

Nevertheless, in China, year after year, the coverage of the population with “normal” and not “collective farm” pensions is still expanding, since the traditional parting words “count on children in old age” will not work in China - a strict “one family” demographic policy has been implemented here for many decades – one child,” which began to be abandoned only quite recently. An only child is entrusted with the task of supporting two elderly parents, which, of course, is an unbearable burden. Also, due to the aging of Chinese society, the proportion of older people grew year by year - if in 1960 only 6.1% were over 60 years old (average life expectancy was 43 years), now retirement age accounts for 16.7% of the population (average life expectancy - 76 years).

As a result, a situation is emerging in China where the working population, just like in European countries, in Russia can no longer provide for pensioners. The state has had to cover the pension deficit for four years in a row: as of 2016, the hole in the Chinese pension fund reached 429.1 billion yuan (approximately $66 billion). It is not surprising that in China they have started talking about the need to raise the retirement age - now for men, as in Russia, it is 60 years old, for women it is even less - 50-55 years.

Ministry of Human Resources and social security China plans that by 2045 the retirement age in China will be raised to 65 years, both for men and women. Due to this, officials are going to increase the size of pensions: for example, in 2018 they have already increased by 5.5% and reach an average of almost 2.5 thousand yuan (about $370). For comparison: in 2005, the average pension was only 640 yuan (about $80). Also, the Chinese authorities are trying to accustom the population to invest in non-state pension insurance (for example, through preferential taxation). But for now with forcing pension reform There is no rush to raise the retirement age in China because they are afraid of a social explosion. First, according to the Chinese authorities, it is necessary to raise the standard of living of the people to the level of the developed countries of the world.

In almost all countries it is customary to take care of the older generation. The state shows its concern by paying pensions and benefits. But do all states practice such a system? In particular, is there a pension system in China? Let's sort it out in order.

In the CIS countries, especially in Russia and Ukraine, the pension system has been functioning for quite a long time and is quite successful. Pensions are calculated according to the minimum subsistence level and length of service. But in China, the pension system is not sufficiently developed, so pension payments are here not many older people get paid . Most pensioners support their children. In the Celestial Empire, this practice is quite acceptable, because the young working generation should deal with financial issues and support their no longer young parents, who at one time put them on their feet.

Unlike Ukraine and Russia, where absolutely all citizens receive a pension, in China there are certain criteria by which pension payments are calculated:

  • Work experience at a state or industrial enterprise;
  • During employment, payment of tax in the amount of 11% of the amount of income to the PRC pension fund;
  • Work experience of at least 15 years;
  • Conducting business activities.

And if one of the points is not observed, the state has every right to refuse to accrue pensions to its citizens. According to 2017 statistics, only every fourth resident of the Middle Kingdom falls under these characteristics. Most often, pensions are awarded to officials, managers, private entrepreneurs, industrial workers and residents of rural areas.

But here, too, there are some peculiarities: pension payments to city residents and residents of villages and towns are different. Pensioners who live in the city can receive accruals in the amount of 20 percent of their salary, but those living in villages will have to be content with only 10%. It is for this reason that in villages, older people, for the most part, are in the care of their children and grandchildren.

As for the retirement age, for men it is 60 years old, and for women 50 or 55. It depends on the type of activity. For example, if a woman worked for 15 years in an office, then her retirement age is 55. And if her workplace was a plant or factory, and also interacted with chemical, radioactive or simply harmful substances to human health, then she has every right retire at the age of 50.

On average, the pension in China is 900-1300 yuan for city residents and 50-100 yuan for rural residents. While living wage in China is 1500 yuan. It turns out that with the money allocated by the state, elderly people cannot live even for a month even at the level of minimal needs, not to mention tours around Europe and vacations in Bali, as pensioners in Germany, for example, can afford.

It is also not uncommon for Chinese enterprises, and not the state, to pay pension benefits to their former employees. How does this happen? The percentage that should go from wages to the State Pension Fund accumulates in the account of the enterprise itself. And upon retirement, the employee calmly receives payments from the same tax savings. A fairly convenient and well-thought-out system, if, of course, the employer treats his employees honestly and conscientiously.

The issue of pensions in China was raised so urgently due to an “unexpected” demographic problem - the aging population. Due to the policy of the 80s of the 20th century “one family - one child”, the number of elderly people significantly exceeded the number of young people (under 14 years old). The actions and reforms of previous politicians have created considerable problems for modern managers. After all, it turns out that people will retire, but will not fall under the criteria for calculating payments - there will be no one to support them. Consequently, such people will find themselves in a very difficult situation.

Some children decide to send their elderly parents to a nursing home, where they will be “better.” Of course, nursing homes in China differ from similar organizations in the CIS countries, but you must agree, nowhere can be better than at home with your family. Moreover, maintaining one person in a Chinese nursing home costs about 3,000 yuan, which is a decent amount.

But, even despite such a sad financial situation, Chinese pensioners do not get upset or depressed. They are not yet in a hurry to turn into grumpy grandmothers or sedentary grandfathers. Elderly Chinese find plenty of things to do.

Firstly, there is more time for family. After all, in working hours, it is simply not possible to pay due attention to children and relatives. People in China are so workaholic that they rarely even take their own vacation. Therefore, after retirement, they find a lot of time to walk with their children, play with their grandchildren and meet with friends and acquaintances.

Secondly, anyone who has been to the Middle Kingdom at least once has probably seen these cheerful pensioners on the sports fields. It feels like their life is just beginning and it’s time to prepare for the sports Olympics. Their agility, stretch and endurance can be the envy of any young European. After all, you and I spend most of our time sitting at the computer. Or maybe it would be worth following the example of Chinese pensioners and at least once going out to the sports ground or stadium near their home?

And finally, the most interesting thing. In big cities, there are many different social, cultural and entertainment organizations created specifically for older people, where, with the help of volunteers, they can engage in the most various types activities from landscaping and gardening to playing the violin and painting with watercolors.

Recently, the People's Republic of China has been reaping the benefits of a birth control policy that began in the 70s of the twentieth century. The country's population is rapidly aging. If we take absolute indicators, then China is already the world champion in the number of pensioners. There is no such number of elderly people in any other country.

According to forecasts, in twenty years there will be only two able-bodied residents of the country for every Chinese pensioner. To prevent the situation from reaching a dead end, the Chinese authorities will have to take unpopular measures.

What kind of pension do the Chinese receive?

China's pension system cannot be called fair. Until recently, only officials and employees of state-owned companies received pensions in this country. As market reforms progressed, the system expanded to urban residents working in the private sector. Thus, only 30% of the Chinese could count on pension payments (the rest were traditionally supported by children). However, faced with the consequences of the birth control policy, the Chinese authorities several years ago forced the introduction of pensions for residents of rural areas.

Today, pension systems in China differ depending on whether a person lives in a city or a rural area, and whether he works for the state or a private company.

There is no single minimum (basic) pension in the country. Residents of rural areas receive the least - their pension is 55-100 yuan (about 9-17 dollars). In cities, the average pension is already 1.5 thousand yuan (about $246).

The basis for calculating a basic pension to a civil servant is mandatory work experience(for a period of at least 15 years at a state-owned enterprise) and monthly deductions from salary in the amount of 11% to the state pension fund.

All contributions for public sector employees are made by the state, and their pensions are tied to salaries in the public sector, which grows faster than inflation. In the private sector, employees contribute 8% of their salary to pension funds, the employer adds another 3%, and indexation is limited by the level of price growth.

In some regions of China, pension savings are accumulated at the enterprises themselves, which then pay pensions to their employees.

Rural pensions are equal to urban ones

The need for pension reform has been discussed in China for many years. The first steps have already been taken. By the end of this year, the Chinese authorities plan to abandon the division of the pension system into urban and rural. They will be merged. According to Chinese experts, migrant workers, that is, villagers working in cities, should benefit the most as a result. And there are a lot of them in China.

The new rules, which will come into force on July 1 this year, provide for mixed financing of pensions, the size of which will depend mainly on contributions paid by the employee himself and government additional payments.

Only those who have made payments for at least 15 years will have the right to receive a monthly pension, and it will be paid from the age of 60.
Employees living in cities will not be affected by this reform.

Plans to raise the retirement age

According to experts, China has all the “bouquet” of pension problems characteristic of developed countries. Already, China is forced to spend 40% of budget revenues to cover the deficit of the pension system.
China's population is aging much faster than would be acceptable for the country's economic development. The number of able-bodied people is steadily decreasing from year to year. In this situation, China will have to follow the path of reforms that are unpopular in the West. The issue of a possible increase in the retirement age is currently being raised in the country.

Notably, retirement ages vary across both industries and regions in China. Currently, men can retire at the age of 60, women working in the administrative field at 55, and women engaged in manual labor at 50. This happened half a century ago, when the average life expectancy here was about 50 years. But taking into account the fact that life expectancy has increased to almost 75 years for the Chinese and to 73 years for Chinese women, the Ministry of Labor and Social Security of the People's Republic of China proposed to begin raising the retirement age in 2016.

It is expected that by 2045, both men and women will retire at age 65.

The Chinese are aging rapidly

According to UN standards, the population in a country is considered old if the number of residents over the age of 65 is 7%, and the younger generation under 14 years old is less than 30%. Today, the number of elderly people in China is already 15%, or 194 million people. In the coming years, the Chinese authorities predict an increase in the number of elderly people (over 60 years old) to 39% of the country's population.

Let's remember that we told you earlier .

Pension system China has one of the youngest in the world. It appeared only in the middle of the 20th century. But for a long time pensions in China were unaffordable for ordinary residents.

In 1990, no more than 6% of elderly Chinese could count on receiving a pension, mostly officials and other government employees. This is primarily due to the large percentage of the elderly population, which continues to this day. As of 2017, there were about 250 million registered people over 60 years of age in China. After the law banning a second child in the family, the Chinese authorities needed to rebuild the pension system almost from scratch.

Pension contributions of employees and employers

The pension budget is formed from contributions from employers and employees after concluding an employment contract. Now the amount of payments after retirement in China consists of two parts - basic and funded pensions.

There are no fixed pension contributions in China. Contributions to the basic pension amount to no more than 25% of the average salary in the region and must be paid for at least 15 years. Workers who have contributed for less than 15 years receive a minimum pension and cannot count on social insurance.

The funded pension consists of contributions from the employee in the amount of 8% of the salary and the employer, who pays 20%. This primarily concerns the private sector, which must make contributions every year. Government organizations automatically send the necessary contributions; employees do not do any reporting.

Old age pension in China

The retirement age in China varies by region. On average, men retire at 60, and women at 55. Women who do manual labor can legally retire at 50.

Average pension in China for old age is approximately 2400 yuan, which is about 23 thousand Russian rubles. However, the fragmentation of many regions and provinces in China also affects the statistics. For example, a Chinese citizen living in Tibet will receive about 4,100 yuan (23,000 rubles), and a resident of Chongqing will receive no more than 1,820 yuan (17,400 rubles).

The volume of pension payments is directly related to the average salary in the region or province - the percentage of contributions in Pension fund. In addition, an important factor is the size of the population and subsidies that the region receives from Beijing.

The amount of pension contributions is also seriously affected by the chosen profession. Employees of state enterprises, private entrepreneurs and officials receive higher pensions.

On at the moment One in four senior citizens in China receives pension benefits.

Problems with China's pension system

China's young pension system has many serious problems. First of all, this is due to the demographic miscalculation of the 70s of the last century. It was then that the birth control law was introduced, which in one generation seriously reduced the percentage of youth and aged the Chinese population. To pay the pension of one elderly resident of China, two middle-aged citizens will soon work.

Also, Chinese officials have repeatedly raised the issue of raising the retirement age. The threshold of 60 years for men and 50-55 for women was set in the years when the average life expectancy in China did not exceed 60 years. At the moment, the state pays pensions on average for 20-25 years - this is an important budget item. Despite the fact that the Communist Party has not yet presented a project to raise the retirement age, it is known that this process will drag on for at least 3-5 years. Chinese officials have repeatedly emphasized that raising the retirement age should occur in stages.

Despite all the innovations of the Communist Party, as of 2018, not all elderly Chinese receive a pension. Of the 231 million citizens over 60 years of age, only 153 million people receive pension payments. This is due to the specifics of registration in China. This system is called hukou and was developed by Chinese officials to control internal migration of the population. It divides the Chinese population into two large categories: city dwellers and farmers. Rural residents cannot legally work in cities and draw up employment contracts. They receive salaries in envelopes, do clerical bookkeeping and do not have the opportunity to receive social insurance.

This is a serious problem for modern China, since the population in rural areas is at least 40%. However, hukou perform their main function - to contain internal migrants, establish control over migrant workers from other countries and distribute China's large population relatively evenly.

The hukou system was introduced by Mao Zedong in 1954. In many ways, it is relevant now because of the mentality of the Chinese population - in rural areas, the connection with traditions is stronger and the younger population takes care of the older generation. However, the demographic crisis makes the situation precarious - it is extremely difficult for an only child in a family to support both parents, especially if they live in rural areas with low wages and few career opportunities.

Pension payments are mainly received by the urban population, while rural residents receive a minimum bonus and work until old age or count on the help of their children and grandchildren. The minimum premium in China is about 130 yuan (1240 Russian rubles).

Prospects for the development of the pension system

Pension reform in China is urgent and urgent important task the future of domestic policy. Chinese officials have repeatedly made various proposals to improve the modern system of payments to pensioners. The most popular of them are:

  1. A smooth increase in the retirement age in two or more stages. The issue of raising the retirement age to 62 years for Chinese pilots has been raised more than once. Experts on Chinese domestic policy say that it is planned to increase the retirement age by profession and type of employment. First of all, the retirement age will be raised for teachers, doctors and social workers.
  2. State pension provision should cover the entire population of China. Although pensions are paid to more Chinese citizens every year, at least 75 million people receive no more than a tiny pension contribution. minimum pension. This is also due to the complexity of design social insurance for rural citizens, and with the reluctance of many employers to pay interest on wages to the Pension Fund.
  3. Creating a reserve fund for additional pension expenses. As the experience of the neighbors of the People's Republic of China and foreign countries has shown, the reserve pension fund is the guarantor of payments to the population cash in the event, for example, of unsuccessful investment of the funded part of the pension or an increase in the level of inflation in the country. It creates a safety net for the country's elderly citizens, who can be confident in the safety of their pension.
  4. Reformation of the hukou registration system. In particular, expanding labor opportunities in the legal field for rural residents. The hukou system creates a number of privileges for urban residents and seriously infringes on the rights of rural residents. Despite the fact that there is no talk of abolishing the hukou system, the issue of simplifying the process of obtaining urban registration and expanding rights for rural residents has been raised.

There are many ways to modernize: increasing social funds for pensioners, increasing the percentage of payments to the Pension Fund or establishing a tax for employers, eliminating the difference between the pensions of government employees and private sector workers, as well as minimizing the difference in pension payments by region.

China's communist agenda implies a special vector for the development of pension reform, which excludes sudden changes, targeting the experience of the West, or abandoning the decisions made by Mao Zedong. However, given China's booming economy and low unemployment rate, successful pension reform may take place in a short period.

The level of social responsibility of the state can be easily assessed by the quality of life of pensioners. After all, a pension is, in essence, a citizen’s reward for decades of economic activity. This remuneration is quite burdensome for the budget, and the amount of expenses for the pension system speaks about the social status of the state better than any statements by officials. In this article we will analyze the standard of living of pensioners in different countries world, including in Russia.

United States of America

The United States is home to 325 million people, the third largest in the world. Of these on pension provision There are more than 42 million people - 13% of the population. Retirement age in the United States ranges from 65 to 67 years, depending on the year of birth. You can also retire early - at age 62, but then the pension will be incomplete and will remain so for the rest of your life. On average, American men become pensioners at 67 years old, women at 65.

The average life expectancy in the US is 77 years for men and 81.5 years for women, so the average American has 10-15 years of worry-free retirement. It may seem that the average American pension of just over $1,400 cannot be enough to live a carefree life in the United States. However, there are a huge number of all kinds of social programs operating there. These include extensive discounts in stores and hotels, and supplements to payments at the state and federal government levels.

China

In terms of population, this is a record-breaking country - 1 billion 380 million people. How many of them are pensioners is difficult to determine due to the opacity of Chinese statistics and the vagueness of the definition of a pensioner. The mere fact that a Chinese person has reached retirement age does not mean that he will be considered a pensioner. For example, rural residents do not receive pensions at all.

In general, the retirement age in China is set at 60 years for men and 50-55 years for women. Average life expectancy is 74.5 and 77.5 years respectively, so a typical Chinese resident can expect 15-20 years of rest. The amount of pension benefits varies greatly from profession to profession and from province to province. On average it's about $250. However, no benefits are provided for pensioners.

Japan

Almost 127 million people, of which more than 20% are pensioners, and this number is growing rapidly - Japan is rapidly aging. This leads to enormous financial burdens on the state. The situation is aggravated by the highest average life expectancy in the world: 80.5 years for men and almost 87 years for women. Moreover, the retirement age is not so high - 65 years for both sexes. This means that the average Japanese person lives in retirement for 15-20 years.

Upon retirement, a Japanese resident receives lump sum payment in the amount of his salary for his entire work experience at this enterprise. Taking into account how rarely the Japanese change jobs, the amounts are more than impressive. The further pension consists of two components: the basic part provided by the state, and accumulative part, consisting of contributions from the employee himself. The result is an average pension of $1,500.

Israel

This miniature country is home to only 8 million 860 thousand people, while Israel is a fairly young country - there are only a little more than 10% of pensioners here, which is less than 1 million people. The high birth rate and small number of old people, which is atypical for highly developed countries, allows the state to take good care of pensioners. As a result, men live here on average 80.5 years, and women - 84 years. They become pensioners at 67 and 64 years old, respectively, and live another 13-20 years.

Israel is a country of immigrants with relatively short story Therefore, pensions here are formed in a specific way. The maximum pensions are received by those Israelis who have worked in the country for more than 30 years. Workers with 10 to 30 years of experience receive less. Others can only count on basic payments. However, there is also a separate old-age benefit, all together this gives an average pension of $1,800.

Germany

The population is more than 82 million people. For several decades now, the birth rate in Germany has been lower than the death rate, so the society is aging rapidly. There are 23% of pensioners here, or almost 19 million people. At the same time, the average life expectancy is 80 years for men and 86 years for women, and both retire at 65 years. That is, people are guaranteed 15-20 years of rest.

Pension accruals are calculated using a rather complex formula; the final amount depends on a number of parameters, up to marital status and places of residence. On average, women receive a significantly smaller pension than men: 590 euros versus 1,020 euros. Interestingly, in East Germany the average female pension is 840 euros.

France

The country is inhabited by almost 67 million people, and this number is constantly growing not only due to immigration, but also to natural growth, which is very rare for highly developed countries. Almost 16.5% of the population or 11 million people can be classified as elderly people aged 65+. But there are slightly more pensioners, because in France people retire at 62.5 years old. A truly ridiculous figure for a country with an average life expectancy of 79.5 years for men and 85.5 years for women.

These 18-23 years of life in retirement are well provided by the state, which has provided a wide package of benefits, allowances and others social payments. The average French pension is 1,000 euros, and can range from 500 euros for newly arrived immigrants and the unemployed, to 2,000 euros for workers with more than 40 years of experience.

United Kingdom

The population is more than 64 million 700 thousand people; the country is characterized by near-zero natural growth. There are 15.8% pensioners here, or more than 10 million people. British men live on average 79.5 years, women - 83 years. Both retire at age 65, but women can become pensioners as early as 60 if they were born before 1950. Thus, British pensioners live 20-23 years.

Pension payments in the UK are multi-stage: the first level is the state pension, which is paid to everyone without exception who has reached retirement age, the second level is the funded part, which is paid by the state or a private fund. State pension- over 600 pounds, the accumulative part can vary greatly. The final average pension is more than £1,500.

Finland

The “Land of Lakes” is inhabited by a little more than 5.5 million people. The number of residents is growing, but this is happening solely due to immigrants - the natural increase here is negative. So the country's population is aging, the number of elderly people reaches 16.8% or almost 1 million people. With an average life expectancy of 78 years for men and 84 years for women, people retire here at 65 years old.

Life in retirement lasts, on average, 13-19 years, but this period can be extended due to the opportunity to retire earlier while receiving a reduced pension. Typically, Finns tend to work longer in order to gain more experience. The average pension in Finland exceeds 1,500 euros, and from 2017 it will increase steadily every 3 months.

Russia

More than 146 million 800 thousand people live in Russia, the population is growing due to natural growth and immigration. More than 13% of the population, or over 19 million people, are older people aged 65 years and above. The average life expectancy in Russia is 64.5 years for men and 76.5 years for women. Russians retire at 60 and 55 years old, respectively.

Thus, a Russian pensioner lives, on average, from 4 to 11 years. During these few years, he can count on payments consisting of two parts: basic and cumulative. The first is guaranteed by the state regardless of work experience, the second is made up of contributions from the citizen himself. The final average Russian pension is 13,700 rubles, or just over $240.

How does one live on retirement in different countries?

Photo: pixabay.com

First of all, you need to understand that it is incorrect to compare the above amounts directly. Different countries have very different costs of living. For example, $100 monthly income in the US is below the poverty line, while in Uganda it is the level of a rich person. Israel is a much more expensive country compared to Russia. Therefore, comparisons only make any sense if they are made at purchasing power parity (PPP).

We will do this: take the GDP at PPP of each country, divide it by nominal GDP, and get a certain coefficient. By multiplying the amount of the pension by this coefficient, we will get a more objective amount of the pension in US dollars, already in relation to the cost of living in the country:

  • US $1441
  • China $484
  • Japan $1802
  • Israel $1950
  • Germany $1466
  • France $1368
  • UK $1935
  • Finland $1840
  • Russia $588

As you can see, even when recalculated taking into account purchasing power parity, Russian pensions are far from pensions in developed countries. In addition, you need to take into account the quality side of life - receiving a thousand dollar pension, living in a clean European village with developed infrastructure and healthcare, is not at all the same as receiving even the same amount, but living in a Russian village without roads, entertainment and normal medical care.