Retirement at later ages can cover social needs but not social divide

An elderly man sips tea and sits on a warm afternoon in Shanghai, Feb 2, 2015. [Photo/IC]

At a recent news conference at the National People's Congress, Yin Weimin, minister of Human Resources and Social Security, said that the ministry expects to draft a policy on later retirement ages this year and will submit it to the central leadership next year; it hopes to make a formal plan in 2017 and implement it in another five years. He said this is in order to fill in the gap of social security fund. Comments:

The minister said that by delaying the retirement age the ministry aims to lessen the pressure on State finance, because the move will cut its spending while increasing its income. That's a good deal for the State, but what about the ordinary working people, who will have to work extra years? Long gone are the days when people sacrificed for the State without any complaint; if bureaucrats need the people to contribute more, please bargain and persuade them before making any draft plan.

Yangcheng Evening News, March 12

Currently the burden on ordinary working people who have to pay for their own social security is already heavy. The employee and the employer combined must pay 28 percent of his salary into the social security fund, yet all he gets after retirement is a pension that is less than 50 percent of it. Delayed retirement might make this burden heavier - that's why people oppose this plan.

Beijing Youth Daily, March 11

The ministry said it would draft the plan, submit to the central leadership for approval, then seek opinions from the whole society. The problem is, retirement is something concerned with the interests of almost every member of society, the authorities need to get people's opinions first before drawing up a draft. We expect the National People's Congress could intervene by discussing the issue first; only on its conclusions should the ministry draft the plan.

Beijing News, March 11

Media surveys show the initiative for delaying retirement has aroused nationwide opposition from the ordinary working people. Why? Their main anger comes from unfairness in the old pension system, namely that officials get big pensions without paying much for social security, while ordinary workers shoulder the burden of social security without getting much pension. The ministry had better solve this unfairness before drafting a plan that more deeply exploits the working population.

Southern Metropolis Daily, March 11