Thursday , May 13 2021
Home / Mish's Global Economic / Income Transfer Schemes US vs China, Which Country is in the Worst Shape?

Income Transfer Schemes US vs China, Which Country is in the Worst Shape?

Summary:
Eddie_T4 hrsSo...currently the mandatory retirement age in China is 60 for men and 50 for female workers and 55 for female civil servants. Pretty young, by US standards. My understanding is that the PRC plan for the retirement age to go up slowly over the next several years. This is necessary, because the shortfall for their pension outlay is estimated by some to be as much as 11 trillion USD over the next 20 years. At the current retirement age, nearly forty percent of Chinese will be collecting retirement with 15 years or so. No way consumption doesn’t go way down, unless there are fairly radical changes. Contrast that to the US, where nobody HAS to retire, and people now commonly work past age 65. Social Security bennies don’t max out unless you work until 70.

Topics:
Mike Shedlock considers the following as important:

This could be interesting, too:

Mike Shedlock writes The FCC Aims to Stem Robocalls But ATT, Verizon and T-Mobile Say Wait

Mike Shedlock writes Elon Musk Discloses Asperger’s on SNL, Monologue a Flop or a Success?

Mike Shedlock writes Afghanistan Bomb Attack Targets Schoolgirls Killing 25: What’s Going On?

Mike Shedlock writes Biden Comments on the Jobs Report and Gets the Key Message Wrong

Eddie_T

So...currently the mandatory retirement age in China is 60 for men and 50 for female workers and 55 for female civil servants. Pretty young, by US standards.

My understanding is that the PRC plan for the retirement age to go up slowly over the next several years. This is necessary, because the shortfall for their pension outlay is estimated by some to be as much as 11 trillion USD over the next 20 years.

At the current retirement age, nearly forty percent of Chinese will be collecting retirement with 15 years or so.

No way consumption doesn’t go way down, unless there are fairly radical changes.

Contrast that to the US, where nobody HAS to retire, and people now commonly work past age 65. Social Security bennies don’t max out unless you work until 70.

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.