Challenges of China's Pension System

China's pension system faces significant challenges, primarily due to its rapidly aging population and the consequences of past family planning policies. The basic pension fund, which is compulsory for those with formal jobs, currently covers around 1.1 billion people but is at risk of depletion by 2035. Young workers such as freelancers and gig economy participants often opt out of pension contributions, further exacerbating the financial strain on the system. With a declining birth rate and increasing number of retirees, the pressure on the workforce to sustain the pension fund grows, highlighting a looming demographic crisis.