Shanghai Issues 'Work Urging Order' to the Elderly: Is the Social Security Fund Running Dry?

Elderly individuals repeatedly face obstacles in finding reemployment. Pictured here is a group of elderly people gathered at a street corner in Shanghai.

[People News] In the vibrant city of Shanghai, known as the most prosperous and astute city in China, a peculiar event has unfolded in recent days. Zhang, who was born in 1962 and just celebrated his 64th birthday, found himself unexpectedly urged by the government to return to work. After navigating through waves of layoffs and stock market fluctuations, he is now set to restart his life in the latter half as a 'senior intern.' The government's push for the elderly to re-enter the workforce has quickly become a trending topic.

On March 19, 28 departments in Shanghai collaborated to issue a document, delivering a 'work urging order' to the elderly. This initiative not only responds to the call of the Two Sessions but also serves as a form of 'self-rescue' by the government in light of a 35 billion yuan pension shortfall.

The document bears a rather appealing title: 'Implementation Plan for Building a Support System for Elderly Social Participation.' Official media have consistently echoed the message: it is essential to 'develop elderly human resources' and to enable the elderly to 'contribute in their later years.'

How heartwarming does that sound? It appears as though the government is appealing to the elderly to come out, engage in activities, and utilise their remaining vitality. However, if you genuinely believe this narrative, you may not fully understand the cold logic behind this intricate financial machinery.

So, why is Shanghai taking the lead?

First, let’s remember a key statistic: 37.6%. This figure represents the ageing ratio of Shanghai's registered population by 2026. In simpler terms, if you stroll along Huaihai Road or Nanjing East Road and close your eyes to throw a ball, there’s a high likelihood it will hit someone preparing to collect their pension or being encouraged to 'return to the battlefield'—a person born in the 1960s. In Shanghai, one in every 2.6 individuals is aged 60 or older. The city has officially entered the challenging phase of a 'super-aged society.'

A group of individuals who have been sharply 'hit' by the course of history.

Now, let’s focus on the group of people who have been 'targeted.' Who are they?

They were born between 1959 and 1962, during the period known as the 'Three Years of Great Famine.' If their lives were adapted into a film, it would depict an absurd history of human survival.

First, they faced hunger at birth. They were born in an era when even basic sustenance was scarce; their survival was nothing short of miraculous.

Next came the upheaval of their young adulthood. They were part of the 'Down to the Countryside Movement,' sent to rural areas at a time when they should have been in school, contributing to the first wave of inexpensive labour to the nation.

Then, they experienced the fragmentation of middle age. In response to the policy of 'having only one child is good, the government will take care of the elderly,' most of them became parents of only children.

Now, just when they thought they had finally reached their 60s, ready to receive that modest pension, help their children with their grandchildren, and enjoy dancing in the squares, the government has intervened.

The government tells them: Old Zhang, Old Wang, don’t take a break; the social security fund is depleted, and you need to return to 're-employment.'

This is not merely about making use of residual energy; it represents the final blow to this generation. The post-60s cohort, born during times of famine, dedicated to the reform era, and now facing sacrifices due to ageing, has ultimately become the last 'human battery' in this national machinery.

The social security fund is on the verge of depletion.

Why is the government acting so urgently? Why do 28 departments in Shanghai need to collaborate to 'recruit able-bodied workers'?

The answer is straightforward: the social security fund is running out.

Consider this: in 1962, China saw a historic peak in births, with over 24 million people born that year. By 2026, this group will be exactly 64 years old. If they all retire and start drawing benefits, Shanghai's financial resources simply cannot sustain it.

What is the current scenario? The younger contributors to the fund are disappearing; those born after 2000 not only number half of their predecessors, but many have opted to 'lie flat' or are unable to find jobs, thus not contributing to social security. Meanwhile, the number of elderly individuals drawing benefits has skyrocketed, as the post-60s baby boomers rush into the social security system.

The government now finds itself in a situation where the line of people waiting to collect benefits stretches all the way to the Bund, while the cash reserves in the treasury are nearly exhausted.

Therefore, this document from Shanghai essentially signifies the government's breaking its promise.' The earlier assurance of 'the government will provide for retirement' has now shifted to 'you must fend for yourself.' Encouraging re-employment is fundamentally about making you 'work one more day at a time.'

The unprotected veterans.

What is most infuriating is the legal pitfalls embedded in this plan.

Did you know? In China, if you go back to work after reaching the legal retirement age, the agreement you sign with the company is not a 'Labour Contract', but a 'Service Agreement'.

The distinction between these two terms is like night and day: you lack the five insurances and one fund; you do not have protection for overtime pay; you are not entitled to compensation if you are dismissed; and the worst part is that if you suffer a heart attack or get injured while on the job, it is not considered a 'work-related injury'.

Although the current plan in Shanghai superficially claims to 'explore the inclusion of work injury insurance', most elderly individuals returning to work still find themselves in a legal grey area.

The government encourages you to come out and contribute, yet it refuses to provide even the most basic protections. Where is the empowerment in this? It is as if a group of veterans is being sent back to the battlefield, unarmed, to shield the government from the bullets of fiscal deficits.

Competing with Young People for Jobs

Ironically, this policy is artificially creating the tragedy of 'grandfathers competing for their grandsons' jobs'. What is the current job market like in mainland China? Fresh graduates are struggling to find jobs, and 35-year-old white-collar workers are being laid off. In this context, the government continues to push for elderly individuals over 60 to return to the workforce.

This has led to a highly distorted cycle: college students are at home relying on their parents because job positions are occupied by re-employed older engineers and former officials. Meanwhile, elderly individuals are working outside to earn money to support their unemployed sons or to help pay off their grandchildren's mortgages.

What role has the government played in this situation? The government has adeptly shifted the issue of 'insufficient pensions' into a system of 'internal family mutual assistance.' The salaries of the elderly are passed directly to their children, allowing the latter to forgo government unemployment benefits, while the elderly themselves do not need to rely on government pensions.

This represents a brilliant piece of fiscal engineering, yet it reflects a painful reality for the common people.

China is on the brink of entering an era of universal labour.

The document from Shanghai is certainly not an isolated incident. It marks the beginning of the entire nation transitioning into the 'universal labour era' as the mainland gradually implements delayed retirement policies.

Starting in 2026, we can expect to see an increasing number of 'silver-haired' individuals working at express delivery stations, property management front desks, and even serving as consultants in internet companies. This is not a sign of social progress, but rather an indication of the breakdown of social contracts.

To those born in the 1960s, I can only advise: take care of your health. In the eyes of the government, you are not a citizen who has toiled for a lifetime; you are simply a 'human resource' to counter inflation and address social security deficits.

Ultimately, this self-help initiative regarding ageing places the heaviest burden on the generation that has already suffered the most.

(First published by People News)
△