www.HowCanIRetire.net

Retiring In China Was Great!

Chinese government can't keep up with the new population

Basically here it is:

China, about 30 years ago, decided that there were too many Chinese on their land mass, so they needed to have a change and the one child policy was adopted - like it or not.

I tend to agree but only to some extent with it, but some people don't.

Chinese men can retire in full at age 60 right now, and women can retire at 55 when working for the government and at age 50 in the private sector.
Such a deal!

You know that isn't going to last forever even if the average life expectancy is around 70 years old in China.

This whole story comes up quickly as they weren't talking about it last year.

On June 6, Chinese officials from the Ministry of Human Resources and Social Security made the statement that a change would be inevitable.

In a People's Daily news poll, 93 percent of the 450,000 people who replied, were in opposition to change in the retirement age.

So then by June 20 the ministry announced that there wasn't an immediate plan to lift the retirement age...believe me when I say it will change.

As of today, July 7th 2012, it takes three and a half workers to pay the pension benefits of every Chinese retired person. In 23 years, (by 2035), it would be down to a two to one ratio.

That can't happen, so a change in retirement age will have to kick in.

The USA and Europe both have unions who can cut pay scales and things are different in these countries that might be more flexible financially but China who is so populous and who has a lower rate of pay for the average citizen already cannot change very easily.

The only other way out would be to grab all of the wealth away from the wealthier Chinese, and that wouldn't work well because even though it wouldn't be enough money as we know we like the freedom to earn although restricted by some taxes, etc..

The government workers already get a better deal than the private sector with pay although the women retire at 55 instead of 50 but still it is a good deal and a lot of university graduates want government jobs after graduation.

This will become an issue.

I won't mention more than to say that there is corruption that has been caught before in government administrative spending and that it has hazed China.