Medical Concerns

One of the concerns are fewer than 30 percent of urban dwellers have pensions and virtually none of the 700 million in the countryside have them. Only 15 percent of those in China that retire have pensions. The existing state pension system covers only a sixth of the work force and is already saddled with liabilities more than China's GDP. Rural seniors generally don't receive any pensions. Hopefully, they will be taken care of by their families. Elderly couples in Beijing that receive a pension live on a combined income of around 2000 yuan or $180 a month. Many receive much less than that. This limited income is a big piece of the puzzle in what shapes the lifestyle of retirees in China. It takes a considerable amount of self-control and budgeting to live on 2000 yuan ($300) per month. Most expats would probably find this impossible to do, first and foremost because of housing. Since the vast majority of all expats need to rent an apartment here in China a sum of 2000 yuan may not even cover rent and utilities. This is why many seniors must stay with their children.

The absence of an adequate safety net slows consumption as Chinese save heavily to pay for health care, schooling and retirement. It is the fear of poor health or a major health problem that concerns may seniors that are retired, especially the expats that are retired and living in China. Although medical care and hospital costs are relatively inexpensive in China, compared to costs in the West, if the person does not have medical insurance, a prolonged or serious medical problem will become a serious financial burden. An example would be an expat who got a knee MRI in Tianjin for around $100 out of pocket with no insurance. After returning home to the US a follow up MRI was taken. Since the expat had been living out of the country he was without insurance and had to once again pay for the service out of pocket, the cost was over $1,000. Incredibly, the equipment used was quite similar. The final doctor’s diagnosis was also the same. This showed the basic level of medical care provided in China was adequate. For expats with access to foreign income, medical care in China may thus been seen as relatively “cheap”. For locals though, or expats working in China and getting paid in RMB such as the average English teacher is, that once “seemingly” cheap healthcare isn’t so cheap after all. The Chinese government is creating a special welfare program including pensions, health care and other programs to deal with the rising number of elderly. The government has said that as China becomes increasingly affluent it is its responsibility to operate such programs.

China Seniors

Anyone over the age of 60 will find that the cost of medical insurance is formidable and possibly not insurable. For example an American worker who has yet to reach senior status pays over 1,200 yuan per month in insurance fees. This includes the usual blend of medical coverage, disability, and retirement contribution. However there is a big question as to whether or not expats who pay into the “retirement” fund monthly will actually get to use this money when and if retirement age ever comes. Especially if they return home after working, that money seems to be paid in vain. On the flip side, most Western countries will provide free or reasonable healthcare for their elderly but this not transferrable to seniors residing outside of their home country. That is why most foreign retirees will return to their homeland to retire once their medical benefits end with the termination of work in China.

One expat who has been retired and enjoying his life in China with a positive attitude is Mr. Juan Cornet. Juan is a Caledonian, 77 years young and first came to China in 1979 as a tourist and loved it so much, he was determined to come back and stay longer. Graduating as an Engineer and later obtaining a Philosophy degree in Theology, he wasn’t sure what he could do in China. After some researching and contacting the Spanish Embassy, he was offered 5 positions in China, since this was a period that China was in dire need of foreign expertise.

Juan landed with a position at the prestigious Peking University and taught Spanish for many years. He eventually married a girl from Beijing and they have lovely twin daughters. At 77, Juan looks and feels like a man much younger and enjoys his retirement by working with foreign universities on a part-time basis using his experience in China. As mentioned, his biggest concern in China is regards to healthcare. For now, he is in good health and very active with exercise everyday and it shows as he has a quick step. When asked what advice he had for the younger generation, his response was: “Do something that you like each day and enjoy life.” Presently Juan is studying Chinese Calligraphy, not just copying the words but also trying to understand the meaning and history of the language.

Juan’s example reveals a few keys as to making a successful stay in China as a senior. One, arrive early. Two, find a decent job. Three, marry a local. These elements completely change the dynamic of an expats stay in China. First, arriving early means to get here long before one is a senior. As such, pursuing academics or business likely won’t be a problem. This gives the expat some roots in China before the senior years arrive. Second, getting good employment can make or break an expats stay in China long term. As many will tell you, living in China with little money or little education is painful. Well educated expats however much like Juan usually find themselves in demand. Particularly those with degrees or experience in fields of science may find getting a job as a professor easier in China than back home. Since housing may very well be provided by the University, the monthly salary is sufficient not only to cover living expenses but even save money. Some elite workers could even get a “signing bonus” for moving here. This greatly assists the expat with making plans to stay after they retire without the usual concerns over money or getting acclimated to a new environment. Third, getting married to a local will pretty much in itself guarantee an expats stay in China won’t be short term. Not to mention, this opens up a huge opportunity for support. Chinese parents as mentioned above are highly involved in their child’s life. This means, the expat by means of marriage may come in line to receive a house, a car or other financial aid which gives them a legitimate means to stay as a senior.