The prospect of a crumbling pension system looms as the next daunting challenge for the world’s second-most populous country.
Photographer: Na Bian/BloombergChina’s Wobbly Economy Faces New Threat From Pensions Boycott
Millions of young people are opting out of the state pension plan, putting additional pressure on a program squeezed by a record-low birth rate and an aging population.
China’s strained pension system, already in danger of running out of money in a decade, faces a new threat from young workers like Gao Pengcheng.
The social media influencer doesn’t pay into the optional state plan, nor do most of his friends. The $200 monthly contribution would eat up about a fifth of his salary — money he’d rather spend dining out or buying a new handbag. Gao says paying into the fund is pointless anyway since the coffers may run dry by the time he retires.