Little gain for retirees from bigger pensions
Print Edition
China’s yearly increases in pensions in the past decade have drawn less praise than questions as surging prices, widening gaps and regional imbalance dampen the happiness of the country’s 74 million-plus retirees.
Official data showed the pension per capita rose from 714 yuan (US$116.98) per month in 2005 to more than 2,000 yuan in 2014 following another 10 percent pension lift. The increase, a move regulated by the State Council, China’s Cabinet, became effective on the first day of this year.
Li Zhong, spokesman for the Ministry of Human Resources and Social Security, said the pension increase in 2014 was determined by factors such as average salary growth, price hikes, pension funds and financial capacity.
However, retirees haven’t had time to celebrate the extra cash, as they still have to budget carefully for expenditures due to the rising cost of living.
“Meat, vegetables and cooking oil are becoming more and more expensive,” said Xie Shujuan, a retired worker in southwest China’s Chongqing City. “Pork prices have at least doubled in the past five years.”
Since Xie retired in 2009, her pension increased from 800 yuan to nearly 1,200 yuan, which is just enough to maintain her basic living costs.
Zhou Tianyong, a professor with the Party School of the Central Committee of CPC, pointed out that the mild growth in the consumer price index in past years didn’t reveal the surging prices of necessities such as meat, eggs, rice and cooking oil, which make up a large part of retirees’ consumption. “People have applauded the increased pension but worry about affording daily food,” Zhou said.
China has boosted its pension adjustments regularly since 1997. In 2012, the country stressed the adjustments in its social security guidelines for the 2011-2015 period.
“A mechanism must be established to adjust pensions with the inflation rate and daily necessity price increases, as well as taking into consideration the salary standard,” said Xiong Hui of Southwest University of Political Science and Law.
The issue has also led to questions about unfair gaps between pensions for different enterprises and government organs, between state-owned firms and private companies, and especially between urban and rural residents.
In China, the median rural pension is 720 yuan every year, only 60 percent of the 1,200 yuan pension seen in urban areas, official statistics show.
Chen Bulei, another professor at the university, said the country’s pension system has different standards based on occupation and household registers, which has harmed fairness.
He also said it is unfair for the country to cover the personal payment pension portion for in-service civil servants and employees in public institutions.
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