China’s workforce saving more for retirement amid concerns about state pension, survey finds

Half of Chinese have begun saving for retirement, up from 46 per cent in 2018, survey from Fidelity International and Ant Financial shows

Results come amid growing concern in China about the financial stability of the state pension fund due to the country’s ageing population

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China’s pension fund, which already relies on government subsidies, held a reserve of 4.8 trillion (US$677 billion) at the end of 2018. The gap between contributions and outlays could reach 11 trillion yuan (US$1.5 billion) by 2050. Photo: Xinhua

Published: 7:30am, 20 Sep 2019Updated: 7:48am, 20 Sep 2019

The number of Chinese saving for retirement increased slightly in the past year, data from a new survey showed Thursday, as worries increased that the government's scheme would run out of money before most younger workers retired.

Half of the 50,000 respondents aged between 18 and 60 said they had begun putting away private savings, up from 46 per cent last year, according to the China retirement readiness survey released by Fidelity International and Ant Financial.

Among 18 to 34-year-olds – roughly three quarters of those surveyed – 48 per cent said they were saving for their future, an increase of four percentage points year-on-year.

However, the survey found the average monthly saving dropped from 1,389 yuan (US$196) to 1,052 yuan ($148), due to financial pressures including parental care, education and career development.

The results come amid growing concern in China about the financial stability of the state pension fund due to the country’s ageing population and shrinking workforce.