More Than Half of China's Elderly Are "Empty Nesters" – Pension and Employment Pressures Intensify

On April 23, 2022, at La Jolla Cove in San Diego, an elderly couple sits on a bench enjoying the ocean view. (Photo by Yang Jie / Dajiyuan)

People News – The issue of population aging in China is becoming increasingly severe, with official statistics on "empty nest" elderly populations raising even more concerns. This situation highlights the dual pressures faced by Chinese society, particularly in terms of elderly care and youth employment.

According to a report by Radio Free Asia, organizations including the Ministry of Civil Affairs, National Health Commission, and the China National Committee on Aging recently released the results of their fifth sampling survey on the living conditions of urban and rural elderly, which began in 2021. The results reveal that nearly 60% of people aged 60 and above in mainland China are "empty nesters" (elderly people whose children have moved away).

The South China Morning Post reported this Tuesday that this percentage has increased by around 10 points over the past decade, and most elderly people cannot afford the cost of nursing homes. Among those willing to move into such facilities, only about half can afford the monthly fee of 1,000 yuan. In cities like Beijing and Shanghai, the cost of such care typically exceeds 5,000 yuan per month.

Yi Fuxian, a demographer at the University of Wisconsin-Madison and a regular contributor to the station, remarked that China's aging problem is a "severe consequence of the one-child policy," describing the current situation as "insurmountable, especially given that China is 'growing old before it becomes rich.'" He highlighted the plight of rural elderly populations. Official CCP data reveals a significant income gap between urban and rural populations aged 60 and over, with urban residents earning an average annual income of 47,000 yuan compared to just 14,000 yuan for rural residents.

As China faces declining birth rates, a shrinking young population, and employment challenges, elderly care has become increasingly problematic. With most seniors relying on pensions as their primary source of income, the national pension system is expected to be exhausted by 2035. Experts warn that not only are elderly livelihoods at risk, but younger generations also face enormous financial burdens, placing Chinese society in a dual crisis.

Karen Hardee, president of Hardee Associates and senior researcher at the Population Reference Bureau, explained that the one-child policy led to smaller families. Today’s young adults are struggling to find jobs while also caring for their elderly relatives. This challenge is compounded by the CCP’s "973" elderly care model, which envisions 97% of elderly people relying on family or community services, with only 3% living in care institutions. That model is now facing significant challenges.

Hardee noted that while the CCP’s move to delay the retirement age may help ease elderly livelihoods and extend the pension system’s longevity by a few more years, age discrimination in China’s workforce is still prevalent. Future employment prospects and the types of jobs available to older adults remain uncertain. Moreover, with China’s ongoing real estate crisis relying on local governments for loans to help purchase unsold housing, it is questionable whether local governments will have enough funds to implement central policies aimed at providing social security. "That’s why it’s no surprise that Xi Jinping is encouraging elderly people to become volunteers," Hardee said.

In July of this year, the 20th Central Committee of the Chinese Communist Party (CCP) passed a decision at its third plenary session, stating that China will "develop the silver economy and create diverse, personalized employment opportunities for the elderly."

However, senior political commentator Cai Shenkun noted that while the current social welfare system is far from perfect, if the government could fund subsidies for elderly care institutions and charge fees based on income levels, it might still be possible to alleviate the current issues facing the elderly.