China is a huge country in terms of territory and population, with a rich past and no less rich present. China is a country that has presented the world with paper, typography, gunpowder, silk and much more that people still need.
Are there any pensions in China?
This is a very topical issue now.
Chinese culture begins in ancient times. Nowadays, it is a very developed country, in almost all areas of industry and the national economy. In Chinese civilization, the socio-political activity of each person was very high. At present, the population of retirement age is more than 170 million people. You could say the country is aging.
Prohibition of the birth of a second child
This is the main problem of China. The country even carried out reforms to ban the birth of a second child. He could be born only if the first was four years old. In this case, a considerable fine must be paid to the state. The reduction in population growth has affected the fact that the state does not have the opportunity to help older people in the country.
Help to parents is artificially undermined - the main duty of daughters and sons, which has evolved over the centuries. Pension in China does not meet the level of development of the country.
Funded pension system
Apply the funded pension system began in the early 21st century. But this system was not very effective. Social guarantees worked to their own detriment. This issue was toughly resolved at the state level. The government is constantly fighting corruption so that there is an increase in the funded part of every pensioner. This is one of the priority areas of public policy.
As it was before?
Initially, a pension in China was assigned exclusively to government employees and civil servants. In 2007, only 30% of the population received a pension (the rest was provided in the old fashion by their children). In 2009, the Chinese authorities created a system where citizens living in villages began to receive pension payments. Already in 2012, 55% of the population receive a pension. The pension accrual system depends on whether a person works for the state or not.
How are old-age pensions calculated in China?
Today, everyone in China receives a pension. Villagers receive a very low pension, approximately $ 9-17. Elderly parents are kept by children. The main task of children is to care for their parents, the government believes. Therefore, agricultural workers are very affected. If the state spends money on the maintenance of pensioners, then there will be no development of the country. This is because the number of people of retirement age exceeds the number of employees.
Retirement age
Women retire at the age of 50. Managers - 55 years. And at the age of 60, male people. Pension benefits are received by industrial workers and public servants. Required work experience of 15 years. During this time, the employee makes deductions. There are enterprises that specifically accumulate a pension fund so that pensions to their employees are paid in full.
In the Middle Kingdom, pension payments are laid down in the city social security labor bureau. Reform is very rare in these bodies, but if it does, then it’s pretty hard. Pension protection methods do not work.
Pension amount
Civil servants or industrial workers monthly transfer 11 percent, of which 7% is carried out by the employer and 4% by the employee himself. Pensions are paid monthly and without delay. This is 20% of the average wage. The old-age pension in China is about $ 240 per month. The need has long been ripe for pension reforms.
And already in 2017 there will be a consideration of the law on increasing pensions in rural areas. The government wants to introduce a mixed pension, which will depend on the contributions of the employee. They also plan to increase the retirement age. The government now spends 40% of budget revenue. The Pension Fund is engaged in the storage of citizens' money, but it also has the right to buy shares of state companies, which ensures the safety and increase of funds.
Calculation Example
Pension in China of the ordinary working class is calculated as follows:
- first, they consider experience (for example, 1 year - 100 yuan to retirement);
- then 1/120 is added - this is the accumulated part;
- payments are made to people who worked before December 31, 1997 (125 yuan);
- added payout for harmfulness and length of service at the enterprise.
Office workers in the capital earning 10,000 yuan a month in thirty years will receive a pension of 3,400 yuan. Civil servants receive retirement benefits once a year (by about 300 yuan). China also plans to raise 15% of its pensions to war invalids and veterans of the Red Army 1927-1937.
Ignoring state notices and damaging the work of the pension fund, many citizens keep money on personal savings books.
The above suggests that the country is going into a financial abyss. This is the opinion of many experts. By 2050, the number of pensioners will increase to 500 million in the Middle Kingdom. But China is coping with these difficulties. The state of the country uses all necessary measures for the development of the pension system.
Citizens of small provincial cities and rural areas do not know anything about pension payments; this news was not covered anywhere. They don’t know such a thing as paying pensions.
Prior to this, people of retirement age who were not part of the workforce were provided by ideological communities. But today, after these communities were dispersed, their own children began to provide pensioners.
In this country, family relations and values are quite strong, so the children of their old people do not leave without help. Thus, regardless of the place of residence, the main thing is the desire to replenish the family. Many do not pay attention to the prohibitions of the state, because a child in old age will provide.
Now it became clear what kind of pension in China.
What today?
To date, the Chinese government does not cease to think that it is necessary to bring global security. This scheme is an opportunity to pay a pension to every senior citizen and pensions for people with disabilities. The size of payments directly depends on wages and length of service.
When China creates such a methodology for pension protection, the elderly will no longer depend on children, and one of the fundamental fertility problems will disappear. Thus, the population in China will begin to decline. You won’t have to spend money on the birth of a child, on his education and becoming on his feet. Thus, it will be possible to live for oneself and oneself in pleasure, without forking out for the younger generation. Here is such a pension in China now.