The basic pension of retirees will rise by another 3%

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2024-06-18 00:08Published in Sichuan

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The economy is slowing down, pensions are in a hurry, and the basic pension of Chinese retirees has been raised by 3% again.

On June 17, the Ministry of Human Resources and Social Security of Chinese announced that from January 1 this year, the basic pension level will be increased for retirees of enterprises, institutions and institutions who have gone through the retirement procedures in accordance with the regulations and receive the basic pension on a monthly basis by the end of 2023, and the overall adjustment level will be 3% of the monthly per capita basic pension of retirees in 2023.

According to the official description, this adjustment will continue to adopt the adjustment method of combining quota adjustment, linked adjustment and appropriate inclination, and the quota adjustment reflects social fairness, and the adjustment standards for all types of retirees in the same area are the same; The linkage adjustment reflects the incentive mechanism of "paying more and getting more" and "paying more for a long time", so that those who pay more and pay more for a long time can get more pensions; Appropriate tilt reflects key care, mainly to take care of groups such as elderly retirees and retirees in difficult and remote areas.

More than 20 million people are expected to retire in 2024. In the next decade, about 300 million Chinese will enter retirement, with more than 40 million new retirees and a 35 million less working population.

China's official think tank, the Academy of Social Sciences, has predicted that the cumulative balance of the national basic pension insurance fund for urban workers will be exhausted in 2035, and the pressure on pension insurance payments will continue to increase in the next 30 years.

China's pension system has the problem of growing old before getting rich, and its per capita GDP lags significantly behind the level of advanced economies when they enter a deeply aging society. Experts generally believe that at present, China's pension system may be close to bankruptcy, and it needs to rely on government subsidies to maintain the operation of the social security system. At a time when China's economic growth is slowing down and local finances are becoming more and more tight, it may face huge challenges.

The Chinese government's response has been to strengthen the operation of social security funds and financial subsidies. The longer-term plan is to extend retirement. The central government has held several meetings to make it clear that it will gradually postpone the statutory retirement age. This means that after this policy is implemented, a generation will face paying more working hours or receiving fewer pensions.

On the other hand, China's pension will be raised almost every year, and it is almost not affected by the economic environment.

As of 2023, the average pension in China is 5,080 yuan per month for retirees and 2,369 yuan for enterprise retirements. Beijing topped the list with 6,000 yuan per month. Jilin Province has a pension of 2,958 yuan, which is the only province in the country with a pension of less than 3,000 yuan.

According to relevant research, there are 170 million rural elderly people in China with a monthly pension of less than 300 yuan, and even no pension in some places.

At a time when China's economy is slowing down, prices are rising, consumption is weak, and young people are facing multiple pressures of difficult employment and debt. On the one hand, the pension increase for retirees is to cope with rising prices, and on the other hand, it can also adjust the economic pressure on families and bring a buffer against potential social instability.

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