Commentary: How to Bridge China’s Rural-Urban Pension Gap

China faces one of the world’s most severe population aging challenges, with 310.31 million people aged 60 and over by the end of 2024, accounting for 22% of the total population. This issue is particularly acute in rural areas, where the proportion of elderly is notably higher than in cities—20.06% of the rural population is aged 60+, compared to cities, and 13.84% are aged 65+, nearly twice the urban proportion. The central government’s objectives include improving the three-tier (county-township-village) elder care service network and promoting pilot and mutual-aid elder care innovations at the grassroots level to ensure rural elderly live with dignity and health[para. 1].

At the core of rural elder care issues lies the legacy of China's urban-rural dual structure. Historically, farmers were excluded from social security benefits enjoyed by urban dwellers due to the hukou (household registration) system. Urban residents received comprehensive coverage through their work units, while rural populations faced decades-long gaps in pension coverage and much lower benefits. This systemic disparity persisted even after urban-rural pension schemes were merged in 2014, leaving rural pension benefits far below those of urban employees[para. 2].

Two reinforcing social dynamics—urbanization and family planning—have further exacerbated elder care challenges. Family planning policies since the 1980s led to smaller rural families, increasing the burden of elder support. Simultaneously, urban migration of younger workers drained rural communities, resulting in elderly-dominated “empty nests.” In 2024, the number of migrant workers reached nearly 300 million, with 180 million working outside their home province. The traditional systems of family-based care and mutual-aid eroded, resulting in loneliness, financial strain, and a suicide rate among rural elderly two to three times higher than in cities, reflecting a vicious support and resource cycle[para. 3].

A bias in resource allocation persists, with a societal tilt favoring urban populations and the young over the elderly. Recent government policies have emphasized subsidies for childcare and free preschool education, yet similar vigor has not consistently reached elder care, despite its foundational importance for social stability and development[para. 4].

The core problem in rural elder care is the scarcity and imbalance of funding: urban pensions receive far greater investment and provide vastly higher monthly benefits (average of 3,500 yuan for urban employees vs. 246 yuan for residents in 2024). Additionally, social security spending has only recently surpassed education spending, and rural elderly face higher illness rates (40% more than urban seniors) and greater out-of-pocket health costs. Regional disparities remain stark—Shanghai’s basic pension is over ten times that of Yunnan, creating a cycle of low income, contributions, and benefits in poorer areas[para. 5][para. 6][para. 7].

To address these issues, the article advocates for a multi-level, region-specific elder care policy. Developed regions should use government funds to purchase diverse care services, while less-developed areas should focus on mutual-aid models and greater fiscal investment. Graded policies matching increased support with age and capability, and region-specific coordination using local resources and collective economies, can create sustainable improvements. Case studies illustrate the success of cooperative mutual-aid models and flexible institutional arrangements[para. 8][para. 9][para. 10].

The government should enhance guarantee capacity and continue reforms—industrialization, urbanization, and property rights innovations—to reduce pressure on the rural pension system. Experiences such as trading land rights for pensions and phased implementation of mutual-aid should be expanded, but tailored to regional development levels and needs. Patience and respect for farmers’ wishes are crucial, with the long-term goal by 2050 of a modern, integrated, government-led elder care system that ensures equity and dignity for China’s aging rural population[para. 11][para. 12][para. 13][para. 14].