China’s rapidly aging society and poor pension system have become a concern for many young Chinese. For this reason, they have started saving for pensions early to take care of the old living.
According to Sixth Tone, a recent survey conducted by the Alibaba subsidiary Ant Fortune and asset management company Fidelity International found that Chinese people start saving for retirement at 35, down from the average of 38 years old in 2021.
Survey respondents also said they are saving an average of 27% of their monthly income for retirement, up from 17% in 2019.
In China, bank deposits and state-run urban pension funds are the primary sources of retirement income. About 60% of survey respondents said they would like to rely on these two sources to support themselves after retirement.
However, they also face many challenges when the economy is in recession, difficulties due to COVID-19, and the unemployment rate continuously sets a record.
About half of respondents said their current income is not enough to cover their lives in the long run, making it difficult to save for retirement.