China's Pension Paradox: A Tale of Two Retirements

According to Dr. Xie Zhijuan, Deputy Director of the Department of Medical Psychology at Peking University People's Hospital, the elderly person's behavior is likely due to living alone and lacking social support, and is a symptom of a condition known as hoarding disorder, characterized by an inability to discard items. This behavior has become a way for Li Minglan to cope with her grief, with every item holding a memory or sentimental value. Fortunately, after a concerted effort, Li Minglan's home has been cleaned and disinfected, and she is receiving the support she needs.

Li Minglan's story highlights a stark contrast in social security and pension guarantees between urban and rural areas in China. The national minimum standard for rural basic pension is only 123 yuan per month, whereas the average monthly pension for enterprise retirees is 3,162 yuan, and the average monthly pension for urban and rural residents is 214 yuan. This significant disparity reflects the deep-seated contradictions in the urban-rural dual structure, particularly in the aspect of pension security. Farmers have made significant contributions and sacrifices during the country's industrialization and urbanization process, yet they have long been at a disadvantage in terms of pension security.

The huge gap between urban and rural pension standards is not merely a numerical difference; it represents a profound social inequality. The recent policy adjustments aim to address this historical injustice by gradually increasing the basic pension for rural residents, thereby bridging the gap between urban and rural areas. In 2025, the Central Government's No. 1 Document proposed a plan to "gradually increase the basic pension for urban and rural residents," marking a significant step towards addressing the rural pension security issue. By raising the basic pension and building a sustainable pension security system, the retirement security of rural residents is expected to become more stable and reliable.

This move is anticipated to have a profound impact on the lives of elderly individuals like Li Minglan, who are struggling to make ends meet despite receiving a monthly pension of over 9,000 yuan. However, for many rural elderly residents, the reality is far more dire, with some living in poverty and struggling to access basic necessities. The contrast between the haves and have-nots is stark, with some elderly individuals, like Li Minglan, struggling with hoarding and social isolation, while others are barely scraping by on meager pensions.

The 2025 Central Government's No. 1 Document has sent a strong signal that the government is committed to addressing the rural pension security issue, by proposing to "gradually increase the basic pension for urban and rural residents." This policy aims to promote social fairness and justice, and to ensure that all citizens, regardless of their location or background, have access to a dignified and secure retirement. As the country continues to urbanize and modernize, it is essential to address the historical disparities and provide adequate pension guarantees for rural residents. By doing so, the government can promote social stability, and ensure that the benefits of economic growth are shared by all.