Mercer China, Dada Insurance Group, Tongfang Global Life and other institutions and research associations have released research reports to analyze and gain insights into the needs and future trends of China's pension market.
Post-80s pension for parents is not too expensive, and consider their own pension problems earlier
The "China Urban Pension Service Demand Report (2012-2021)" jointly released by the Aging Finance Branch of the Chinese Society of Gerontology and Geriatrics, the Silver Economy and Health Wealth Index Research Group of Tsinghua University, and the Insurance Group shows that the post-80s consider their own pension problems earlier than the post-60s, and the proportion of pensions considering themselves and their parents is higher than that of the post-70s, showing more pension anxiety. Growing up to enjoy all the love of their parents, this generation of wealthy only children will also contribute financial support to their parents' pension.
According to the report, 31.1% of the respondents were "worried that sudden illnesses could not be treated in time", 29.6% of the respondents were worried that "nursing staff is not professional / good and reliable nursing staff is difficult to find", and 26.6% of respondents were "worried that good nursing institutions are 'difficult to find a bed'".
For the elderly, people aged 30-49 pay more attention to chronic disease management, worry that sudden diseases cannot be treated in time, etc.; while people aged 50 and above are worried about not having money and living without themselves.
Respondents are more concerned about emotional appeals outside of just need, and the willingness of communities and institutions to provide for the elderly has increased significantly. There are multiple factors for urban residents to choose institutional pensions: 52.2% of urban residents believe that pension institutions can provide more professional care; 48.1% of respondents believe that there are more elderly people in pension institutions and can be active together.
In 2021 Chinese mainland was named the fastest-improving pension system in the world
According to the 2021 Mercer CFA Institute Global Pension Index report, the retirement income system score of the Chinese mainland has risen from the previous D (47.3) to C (55.1), making it the most progressive system in the world. This is largely due to its higher net replacement rate and better regulation, particularly initiatives around optimizing fertility policies, gradually raising the retirement age and developing the "third pillar" pension system to complement state-led pension schemes.
The 2021 Global Pension Index assesses each retirement system through three weighted sub-indices (adequacy, sustainability and integrity), and across all measures, Chinese mainland score improved, ranking 28th out of 43 retirement income systems and 33rd in 2020.
In 2021, Chinese mainland ranked 21st in the Adequacy Index, which looks at factors such as welfare, system design, savings levels, and homeownership rates to determine whether the country is able to provide adequate retirement income; Chinese mainland ranks 36th on the Integrity Index, which takes into account factors such as regulatory, governance, communication, and operating costs; and in the Sustainability Index Chinese mainland ranks 31st, which measures the likelihood that a system will be able to provide benefits in the future.
In 2021, the retirement readiness index of Chinese residents hit the highest in nine years, the index of high-income people in Kochi was higher, and young people aged 18-24 were the most pessimistic
The 2021 China Residents Retirement Readiness Index Survey Report was released. In 2021, the retirement readiness index of Chinese residents was 6.78, the highest level in nine years. Professor Chen Bingzheng, director of the China Insurance and Risk Management Research Center at Tsinghua University of Economics and Management, said that this is mainly due to the significant improvement in "retirement preparation adequacy" and "retirement plan perfection" compared with last year, and the confidence of Chinese residents in retirement life has further improved. The vision of Chinese residents for retirement continues the more optimistic tone of 2020, with rich associations for spending more time with family and friends, traveling, and developing new hobbies.
Speaking of the portrait of people with high retirement readiness index, Professor Chen Bingzheng said that this type of group has the characteristics of married and stable families, economic underdevelopment in the region, employment in high-level positions, abundant and stable living income, high level of education, and healthy living habits.
Faced with economic pressures and the pressure of social aging, young people have insufficient confidence in retirement. The report shows that only 48% of young people have great confidence that they can live a comfortable and satisfactory life after retirement, and about 16% of young people have a negative attitude, especially young people aged 18-24 who are the most pessimistic about retirement expectations, mainly worried about the future of no money, lack of social networking, and loss of independence.
The report selects six indicators of retirement responsibility awareness, financial planning awareness level, financial problem understanding ability, retirement plan improvement, retirement savings adequacy, and confidence in obtaining the desired income as the measures of the retirement readiness index. The value of the retirement readiness index is between 0 and 10, and the larger the value, the more adequate the retirement preparation, of which 8 to 10 is the high readiness index, 6 to 7.9 is the medium readiness index, and below 6 is the low readiness index.