Authorities mull measures to address aging population

However, with no such concerns, wealthier locations lacked incentives to raise the rate workers pay. That may prove problematic in the long run in light of China's rapidly aging population.

Speaking at a news conference in February last year, Qi Tao, who oversees the fund at the ministry, said it has been unified on a national scale, making it possible to transfer money across regions and assist struggling provinces, but central and local government payment duties still needed to be worked out in the years to come.

"Central government support for local authorities will not decrease, though," he said.

Allowing contributors to work for longer would also relieve the pressure, but while policymakers have deliberated raising the retirement age for years, the policy has still not been fully implemented.

In a proposal unveiled in November 2020, the Communist Party of China Central Committee said authorities will raise the retirement age in a "progressive manner", but failed to provide details.

Retirement ages in China — 60 for men and 55 for women — are significantly lower than in Japan, Germany and many other aging countries. Moreover, people in labor-intensive jobs or those with occupational diseases and work-induced disabilities are allowed to retire up to 10 years earlier.

Proponents of prolonging career duration, such as Lin Bao, a researcher at the Chinese Academy of Social Sciences, argued that the move would be a sensible reform given that future retirees will spend more time at school than older people, and reform would help improve the pension fund's resilience. Opponents including Chen Lixiang, vice-chairman of the Chinese Society for Technical and Vocational Education, feared the adjustment could result in mass youth unemployment.

Last month, Cai Fang, a senior legislator, told a forum that individuals should be protected and supported by society. Also, China's pledge to achieve common prosperity means that older people must join the middle-income group. However, historical reasons mean that "many older workers in our time are less educated or are inadequately trained, which makes gradual reform necessary", he said.