The Chinese Communist Party (CCP) is delaying the retirement age of its government employees as the draconian one-child policy bears its long-term effects in the form of an ageing population accompanied by an increased state expenditure on social security pensions, a report said on Friday.
From March 1, the Communist Party of China (CCP) started implementing the delayed retirement policy in order to solve the problem of insufficient age-old social security pension funds, Inside Over reported.
The measure came as a result of last year’s “14th Five-Year Plan for National Aging Development and Elderly Care Service System” issued by the State Council of the Communist Party of China on December 30.
“The only reason for it is that there is no money now,” said Feng Chongyi, a professor at the University of Technology Sydney and an expert on China in an interview with the Epoch Times, adding, “the local governments are in short supply and this hole cannot be filled.”
The policy was in work for a long time since 2013 but it was delayed because of strong resentment among the labour force, according to the Chinese digital platform Tencent.com.
Feng also pointed out that the CCP’s family planning has destroyed the natural population law, which not only caused the imbalance of the male and female population in China but also greatly affected the supply of labour force and turned China into an ageing society, the report said.
An added problem for the CCP is that the new measure is set to leave tens of millions of graduates every year, with nowhere to go, as the old can’t retire, and the young have nowhere to go.
“The delayed retirement policy reflects that social welfare expenditures related to retirement and old age have become a heavy burden on the central government’s financial expenditure, so it delays retirement to minimise this, its pay pressure,” said Wu Jialong, a Taiwanese economist.
He added that delaying retirement is the last resort for the Central Committee of the Communist Party of China to deal with financial pressures, also warning that civil unrest will ensue in the future because of financial pressures.