Core Viewpoint - The article emphasizes the impending era of mandatory social insurance contributions in China, highlighting its implications for fairness, welfare, and the overall pension system [6][7]. Group 1: Background on Mandatory Social Insurance - Mandatory social insurance is not a new concept; it has been legally mandated for over a decade [8]. - Both employers and employees are required to participate in social insurance, as stipulated by laws such as the Labor Law and the Social Insurance Law [10][12]. - Historically, some small businesses and flexible workers have evaded contributions due to economic conditions and enforcement issues [14][15]. Group 2: Strengthening of Social Insurance Collection - The collection of social insurance has become more stringent since the reform in 2019, which transferred collection responsibilities to tax authorities [15]. - A significant indicator of this shift is that even companies like Meituan are now contributing to pension insurance for delivery riders, potentially covering millions [17]. - The costs associated with social insurance will ultimately be borne by employees, despite appearing to be employer obligations [18][19]. Group 3: The Importance of Social Insurance - Social insurance encompasses five major types, with pensions and healthcare being the most critical [20][21]. - The sustainability of the pension system relies on widespread participation; the larger the contributor base, the stronger the system [22][23]. - As of now, 1.32 billion people are enrolled in medical insurance, and 1.07 billion in basic pension insurance, indicating a vast social insurance system [24]. Group 4: Demographic Challenges - The current pension system is under pressure due to an increasing elderly population and a declining birth rate [39]. - The old-age dependency ratio has risen significantly, indicating that fewer young people are supporting more retirees [32]. - The retirement wave is expected to escalate, with over 25 million people reaching retirement age annually [34]. Group 5: Government Strategies to Address Pension Issues - The government is implementing strategies such as gradually raising the retirement age over the next 15 years [42][43]. - A national pension adjustment system is being established to balance contributions across regions, particularly from economically stronger provinces to those facing deficits [46][50]. - The transfer of state-owned capital to bolster pension funds has already seen 1.68 trillion yuan allocated [54][55].

Group 1 - South Korea's fertility rate has dropped to a record low of 0.72 in 2023, the lowest globally and less than half of the OECD average of 1.6 [1] - The aging population in South Korea is increasing at a faster rate than any other developed country, with the proportion of people aged 65 and older expected to exceed 40% by 2050, up from 17.9% in 2023 [1] - The elderly dependency ratio is projected to rise from 28% in 2023 to 44% by 2050, and could reach 117% by 2082, making it the highest among OECD countries [1] Group 2 - South Korea has the highest elderly poverty rate in the OECD, with 40% of older adults living below the poverty line, attributed to a weak national pension system [2] - Only 37% of South Koreans aged 55 to 64 are still employed, with many exiting the labor market prematurely, averaging retirement at 49.4 years old [2] - Companies in South Korea often prefer to lay off older employees due to the financial burden of higher salaries for long-tenured workers, leading to subtle layoffs [2] Group 3 - Japan has implemented various policies to encourage continued employment, including raising the mandatory retirement age and providing employment options for older workers [3] - By 2023, Japan's employment rate for those in their 60s reached 63% due to these reforms [3] - Despite awareness of the need for labor market reforms in South Korea, achieving such changes is challenging and requires a consistent reform approach [3]