[The Epoch Times, August 22, 2024](Epoch Times reporter Li Yuanming reported in an interview) China has entered an aging society, and officials have acknowledged that the dire state of social security funds is unprecedented. Observers believe that the CCP has consistently overlooked the public’s welfare. Due to the economic downturn and the erosion of social ethics, elderly care in China is facing a significant crisis.
On August 19, Ding Xuedong, Secretary of the Party Committee for the National Social Security Fund, published an article on the official website, confirming that China “has entered a moderate aging stage and is expected to transition into a severe aging stage around 2035, which will persist for a long time.” He noted that “the urgency and difficulty of the Strategic Reserve Fund are unprecedented.”
Data released by the National Bureau of Statistics of the Communist Party of China indicates that by the end of 2023, the population of individuals over 60 years old in China will nearly reach 300 million. The elderly population is sizeable, and the pace of aging is rapid. Experts predict this figure will exceed 400 million around 2035.
How many people can afford to live in a nursing home?
For the silver-haired sector catering to hundreds of millions of elderly individuals, the outlook is not bright. “Everyone lacks money. Few choose to stay in nursing homes, which cost between two to three thousand yuan. Those who are immobile (cannot care for themselves) face even higher costs.” A doctor from Hebei shared with an Epoch Times reporter.
For instance, in a city in Shandong, several nursing homes have opened recently. Some elderly individuals in need of daily care or unable to care for themselves opt to reside in these homes, which cost upwards of 3,000 yuan.
In rural North China, a couple of empty-nesters inhabit a deserted village. In his 70s, one uncle still worked at a nearby construction site. Eventually, he could no longer work and rented out his land. Farmers receive pensions ranging from one to two hundred yuan a month, supplemented by annual allowances from their children working away from home. The New Rural Cooperative Medical Insurance in the county only covers 45% of costs. A few years prior, the uncle’s sister suffered a cerebral hemorrhage and was taken directly home from the hospital to die.
Ms. Wang Li, a volunteer caring for anti-war veterans, informed The Epoch Times that after retiring, she has spent over ten years in volunteer work and learned that there are three tiers of nursing homes in China. The first tier is high-end private nursing homes, costing over 10,000 to 20,000 yuan a month, accessible only to artists and the wealthy. While conditions are excellent, social interaction is minimal, with residents often appearing aloof.
The second tier comprises mid-range private nursing homes, sanctioned by the state for construction. In major cities, fees usually range from 5,000 to 8,000 yuan. With Shanghai’s elevated salary rates and living standards, retired workers can generally afford this. Occasionally, an elderly couple may share a room for about 10,000 yuan. Nursing homes in Shandong charge between 3,000 and 4,000 yuan, with 3,000 for a triple room and 4,000 for a double room, depending on local wage standards.
The third tier is divided into two categories. One is funded by the civil affairs department, where some lonely elderly individuals don’t have to pay, but may face a wait of ten or more years due to limited resources; the other is low-end nursing homes, which are quite substandard. In rural areas, 3,000 yuan is considered the best rate for such facilities.
“Almost all the funding allocated by the state is scattered, with nursing staff receiving minimal pay, leaving little for the elderly to sustain themselves,” Wang Li remarked. She mentioned that volunteers once assisted veterans into nursing homes, but, “the morals of the Chinese public leave much to be desired, particularly for elderly individuals who are alone and without children. After some elderly people pass away, nursing homes can delay reporting their death for six months, incurring significant costs.”
Wang Li noted that the disparity between retirement wages for private sector workers and those in government institutions is over twofold, attracting criticism and complaints from retired workers in cities. Foreign enterprises typically offer the highest contributions to pension insurance, adhering strictly to national regulations. In contrast, state-owned enterprises exploit regulatory loopholes and provide minimal payments, which do not suffice.
“A mid-range nursing home costs between 6,000 to 8,000 yuan. As I age, I won’t be able to afford a nursing home without sufficient funds. Unless my children are willing to support me, I won’t be able to make it,” she stated.
Over time, the Chinese Communist Party has repeatedly reversed its pension-related commitments, transitioning from “It is better to have only one child, and the government will support the elderly” in the 1980s to “You cannot rely on the government for pension support” in 2000, and then to “It is better to defer retirement and provide for yourself” in 2012.
In 2023, the Civil Affairs Bureau of the Social Work Committee of the Beijing Municipal Party Committee claimed, “More than 99% of the elderly in this city opt for home care, while less than 1% choose institutional care.”
Wang Li believes that the traditional concept among the Chinese elderly is still to live with their children, yet self-sufficiency for them is increasingly problematic. In Shandong, the birthplace of Confucius and Mencius, an abandoned village has emerged, where the elderly, having been poorly raised by their children, inhabit small shanties and care for each other. Media reports from rural areas have highlighted instances of elderly individuals committing suicide by drinking poison due to neglect from their children.
She remarked, “Today, it is inevitable that every elderly person will encounter these issues. Having money is pointless without someone to care for you. Even if the elderly have funds, can that be converted into food? Don’t they also require care? You cannot live in a nursing home. Hiring a nanny in Shanghai costs between five to six thousand yuan. A few thousand yuan isn’t enough for a nanny.”
Those born in the 1980s often find themselves in a situation of caring for both aging parents and young children. Four elders may depend on a single child, illustrating the serious elderly care challenges in China.
Analysis: The CCP Pursues Global Hegemony While Neglecting China’s Elderly Care Issues
According to the “China Pension Actuarial Report 2019-2050” published by the Chinese Academy of Social Sciences, a shortage in pension income is anticipated by 2028, with accumulated balances expected to be depleted by 2035.
In May of the previous year, the Central Committee of the Communist Party of China and the General Office of the State Council issued the “Opinions on Promoting the Establishment of a Basic Elderly Care Service System,” mandating each province to implement a basic elderly care service system tailored to their respective economic and social development levels and financial conditions.
However, a few years ago, the State Council of the Communist Party of China previously emphasized the necessity of enhancing the elderly care system. Presently, the ratio of China’s pension expenditures to GDP is roughly 10%, significantly lower than that of other nations. Why does the CCP hesitate to prioritize investment in elderly care as a political imperative and to create a service industry for 400 million seniors? Are they unaware that their officials are aging as well?
Feng Chongyi, a professor at the University of Technology Sydney, indicated in an interview with The Epoch Times that since the Communist Party’s inception, it has persistently maintained low wages, minimal benefits, and raised taxes. While advocating for common prosperity, the original “national policy” rhetoric was concerned with welfare. However, after the “reform and opening up,” this responsibility has been shifted onto individuals, with financial backing effectively evading responsibility, which ultimately misleads the public.
“Most financial resources are allocated to national defense, maintaining stability, and industrial infrastructure development. Support for the elderly, healthcare, and education constitutes a very small fraction of the overall GDP, extremely minimal on a global scale.”
Ding Xuedong’s article noted that “over the 24 years since the establishment of the National Social Security Fund, the average annual return on investments has surpassed 7%.” It is essential to “enhance the social security fund,” increase investments in the domestic capital market, and augment funding in technological innovation and New Productivity.
Feng Chongyi contended that while the social security fund holds significant potential, current returns on investment are notably low due to widespread declines in the real estate sector and other industries. Even real estate developers and private enterprises are no longer permitted to invest in loans, further driving down pension fund numbers.
Additionally, changes in demographic structures suggest that China is facing an aging population before achieving wealth, with accelerating aging pressures intensifying the strain on already burdened pension funds.
“These conditions have precipitated the current crisis. Some economists candidly warn that in a few years, the entire pension fund may face bankruptcy. This reflects an extremely serious situation,” he said.
As early as 2016, Heilongjiang’s pension insurance had depleted its reserve balances and was unsustainable. Data from the Ministry of Finance of the Communist Party of China indicates that 11 of China’s 31 provincial-level administrative regions are confronting pension budget deficits.
Feng Chongyi analyzed that local government finances are now struggling to meet expenses. Particularly since Xi Jinping assumed power, the focus on the “One Belt and One Road” initiative and various unfinished infrastructure projects, coupled with substantial foreign investments, has led to significant strains on the national treasury. Consequently, neither local nor central finance possesses the resources to fill this gap.
He stated, “Globally, discussions are focused on how China can navigate out of its economic crisis. Suggestions include stimulating consumption; therefore, investing in pensions and compensating the elderly represents one avenue to boost consumption. However, this opposes the current national policy of the Chinese Communist Party, which aims to dominate global markets with its industrial capabilities and develop cutting-edge technologies as its primary objectives.”
Feng Chongyi emphasized that the CCP’s pursuit of international hegemony is central to its governing ideology. Aiming for global strength to garner support requires prioritizing investments in sectors such as electric vehicles, solar panels, and lithium batteries, leaving elderly care neglected. The ongoing financial difficulties and pension crisis are the consequences of this prolonged neglect.
Editor in charge: Li Yuyuan#
China’s Aging Population Crisis: Social Security and Elderly Care Challenges
[The Epoch Times, August 22, 2024](Epoch Times reporter Li Yuanming reported in an interview) China has entered an aging society, and officials have admitted that the critical situation of social security funds is unprecedented. Observers believe that the CCP has long neglected people’s livelihood. Due to the economic downturn and the corruption of social morality, China’s elderly care is facing a huge crisis.
On August 19, Ding Xuedong, Secretary of the Party Committee of the National Social Security Fund, published an article on the official website, acknowledging that China “has entered a moderate aging stage, and is expected to enter a severe aging stage around 2035 and will continue for a long time.” He noted, “The urgency and difficulty involved in handling the Strategic Reserve Fund are unprecedented.”
Demographics of China’s Aging Population
Data released by the National Bureau of Statistics of the Communist Party of China shows that by the end of 2023, China’s population over 60 years old will have reached nearly 300 million. The elderly population base is large and the rate of aging is rapid. Experts predict that this number will exceed 400 million around 2035.
Cost of Elderly Care: Who Can Afford It?
For this silver-haired industry catering to hundreds of millions of elderly individuals, the prospects are not optimistic. “Because everyone has no money. Few people choose to live in a nursing home, which costs two to three thousand (yuan),” said a doctor from Hebei in an interview with Epoch Times.
Nursing Home Costs
| Nursing Home Type | Monthly Cost (Yuan) | Notes |
|---|---|---|
| High-End Private Nursing Home | 10,000 – 20,000 | Luxury accommodations, limited social interaction |
| Mid-Range Private Nursing Home | 5,000 – 8,000 | Affordable for some retired workers |
| Government-Supported Homes | 0 | Long waiting periods, limited availability |
| Low-End Nursing Homes | 3,000+ | Poor conditions and minimal care |
For instance, in a city in Shandong, many nursing homes charge over 3,000 yuan, which is still unaffordable for many elderly who rely on meager pensions of one to two hundred yuan a month. In rural North China, an elderly couple lives in a hollowed-out village, where the uncle, at 70, works at a nearby construction site just to survive.
Levels of Care Available
Ms. Wang Li, a volunteer caring for veterans, highlighted the three levels of nursing homes in China:
- High-end private nursing homes: Costly, offering excellent amenities but little personal interaction.
- Mid-range private facilities: Approved by the state; more affordable and can accommodate couples.
- Government-funded and low-end homes: Usually involve long wait times and often provide substandard care.
The State of Elderly Care Ethics
“Originally, the money allocated by the state is picked up here and there, and the nursing staff picks up some more, but there is nothing left for the elderly to eat,” Wang remarked. Important to note is the disparity between the pension income of enterprise workers and that of government employees. This divide has been a topic of contention among retired workers.
Changing Policies Regarding Pensions
The Chinese Communist Party has continuously changed its approach to pensions, shifting responsibility away from the government. From promises made in the 1980s to provide for the elderly with government support, to current statements urging individuals to prepare for their own retirement, the shifting rhetoric reflects a deeper crisis.
Home Care versus Institutional Care
Statistics from the Civil Affairs Bureau of the Social Work Committee of the Beijing Municipal Party Committee in 2023 indicate a stark preference for home care over institutional care, with over 99% of the elderly preferring to remain at home. The cultural expectation remains that elderly parents will live with their children, despite the growing difficulties in providing adequate support.
Government Response: A Focus on Hegemony vs. Domestic Welfare
China’s demographic crisis is framed against the backdrop of a government prioritizing global ambitions over domestic welfare. According to the “China Pension Actuarial Report 2019-2050” from the Chinese Academy of Social Sciences, pension income insufficiency will become evident in just a few years, leading to significant challenges by 2035.
Feng Chongyi, a professor at the University of Technology Sydney, emphasized that the CCP’s focus has been misaligned. “Most of its money is spent on national defense, stability maintenance, and industrial infrastructure,” he noted. Any significant allocation for elderly care has become overshadowed by funding for projects aimed at achieving international standing.
Financial Crisis Looming
With an acute shortage of pension funds coupled with an aging population, the impending financial crisis appears inevitable. Reports from various provinces indicate that many are already grappling with pension budget deficits, a situation exacerbated by increasing economic pressures and governmental mismanagement.
Case Studies: Rural Realities and Individual Experiences
Wang Li notes that cases of elderly suicide due to neglect are rising, particularly in rural areas where families have completely abandoned elderly kin. For instance, she described a former agricultural community now plagued by deserted homes and unkempt villages, where aged individuals are left to fend for themselves.
Migrant workers, often the children of these elderly, prioritize their own survival and prosperity, leading to an abandonment epidemic. The double burden of caring for aging parents while raising children presents insurmountable challenges for many families.
Practical Tips for Supporting Our Elderly Population
- Community Engagement: Develop local outreach programs to create a support system for the elderly.
- Financial Planning: Encourage families to save for elderly care and set aside funds specifically for these needs.
- Policy Advocacy: Push for reforms in social security to better serve the growing elderly population.
- Volunteer Initiatives: Engage in or support existing volunteer programs aimed at assisting the elderly.
