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Recently， the National Development and Reform Commission （NDRC） announced that the first batch of public-private-partnership （PPP） projects got approval， including 38 retirement service projects which cover a total investment of over 20 billion. Most of retirement service projects are senile apartments， nursing homes， aged-care center and other facilities related to the care of the elderly， mainly located in Jiangsu， Shandong and Jiangxi provinces.
According to analysis from a policy researcher， the retirement industry is expected to become China’s new economic growth point and way to expand domestic demand， with the government increasing policy support amid economic downturn and population aging concerns. Meanwhile， that will relieve the pressure of a 421 family （that is， a family consists of four seniors， two young people and one child）.
Over the past decade， China’s elderly dependency ratio increased rapidly. According to data from the National Bureau of Statistics， by the end of 2014， China’s elderly population reached 212 million， becoming the world’s first country whose elderly population exceeded 200-million mark.
Du Peng， director of the Institute of Gerontology un-der the Renmin University of China， said that China’s elderly population would be closer to 450 million by 2055， an all-time high in history.
“Based on the current data that China has 200 million senior citizens， retirement service market will reach 3 trillion yuan， with high-end senior care sector providing 50 million jobs，” said Wang Hong， Secretary of the Party Committee of Baoshan District， Shanghai City.
“China’s retirement industry still in its infancy， especially at the top-level design aspect，” said the abovementioned researcher. “There are a lot of uncertainties in the implementation of policies.”
Lack of Available Land
The Chinese government has incorporated the issue of aging into the overall national economic development plan by an integration of economic， legal and administrative measures.
“In fact， there are a lot of companies that are eager to enter into the retirement industry. However， most of them hesitate and wait，” said the researcher. “The main reason lies in the fact that local governments lack motivations to support the industry.”
In April， the Ministry of Land and Resources issued the opinions on the land usage for retirement service facilities， which articulated clearly the scope， classification and supply modes of land used for retirement service facilities for the first time. Pursuant to the opinions， the land usage for retirement service facilities should be incorporated into the national construction land supply plan.
“Since the lack of a clear classification for land for the senior service facilities， it is almost impossible to vitalize the conversion of inventory construction land usage. At the national level， many principled supportive policies are put forward.
However， due to the lack of detailed rules for the implementation of those polices， combined with the lack of motivation and enthusiasm to develop the retirement industry shown by local governments， it is difficult to realize the conversion of inventory construction land usage，” said the researcher.
“Besides， from the aspect of incremental construction land， the supply mode of land used for non-profit retirement service limits the social capital to enter into the sector.”
Housing costs in nursing homes is high， due to the BAI mode （bid ， auction and listing） of land used for senior retirement housing. “If nursing homes continue to acquire land through the mode， only wealthy seniors can afford the housing and services，” said an insider.
As China is stepping into an ageing society， the government must address the need to provide more housing for the elderly.
Besides， many Chinese white-collar workers， especially female workers， said that they wanted to retire early due to the dual stresses of work and daily life. In addition， with the development of urbanization， China has a large number of empty-nesters， especially in rural areas.
A majority of Chinese people surveyed said that housing is a more reliable way to finance retirement than having children， according to the result of a survey by ManulifeSinochem Life Insurance Co Ltd.
Although many people emphasized the importance of the social support for the senior care， China’s retirement industry put focuses on the families and communities that provide care service for the senior citizen， leaving limited room for enterprises to expand the market.
The retirement care-home industry is supported to have great market potential in an aging society. There are a lot of private companies involved in the retirement industry in coastal areas. However， many of those companies suffer consecutive losses， and Jiujiu Home for Seniors is one of them.
Established in 1999 in Ningbo in Zhejiang Province with an original capital investment of over 14 million yuan， Jiujiu Home for Seniors became the largest civil retirement company in the province. However， the company still has many problems， including years of net losses. “I will continue to run it as long as it can operate until the day when I am forced to give up，” said Ren Dingji， proprietor of Jiujiu Home for Seniors.
Many other retirement care-home enterprises also have had the same experience. According to an insider， the underlying problem lies in their limited financing power as civil companies.
According to Du Peng， the social service has become the bottleneck for the development of the social senior care service system. He said that in a bid to give a full play to the senior care function of social communities， the current staff system calls for a reform to break.
In China， the number of empty-nesters accounted for 49.7% of the elderly population in urban areas in 2013， while the rate reached up to 56% in large and medium-sized cities. Based on the data， if 5% of empty-nesters need the household service， it will create 5 million jobs， indicating a huge market with great potential.
Lack of Professional Talents
There is a huge demand in the retirement industry. However， the industry is short of professional talents. 90% of nurses involving in the care for the elderly resigned within three years after graduating from secondary vocational schools， according to a survey. That means 10% of nursing graduates stayed in the senior care sector for a long time.
According to an insider， the brain drain in the senior care sector is mainly due to the low salary level， unappealing to the young nurses.
In some cities， local governments rolled out a series of supportive policies to encourage the youth to work as nurses for the elderly， such as free training and talent treatment in the household registration.
The government should cooperate with companies to retain the talent， said the insider.
China should lower the cost of retirement home-care service to cater for the aging society. According to the advice from insiders， the authority should imitate Singapore’s policy to encourage the young to live with their parents or live nearby by virtue of subsidies and tax breaks.
According to analysis from a policy researcher， the retirement industry is expected to become China’s new economic growth point and way to expand domestic demand， with the government increasing policy support amid economic downturn and population aging concerns. Meanwhile， that will relieve the pressure of a 421 family （that is， a family consists of four seniors， two young people and one child）.
Over the past decade， China’s elderly dependency ratio increased rapidly. According to data from the National Bureau of Statistics， by the end of 2014， China’s elderly population reached 212 million， becoming the world’s first country whose elderly population exceeded 200-million mark.
Du Peng， director of the Institute of Gerontology un-der the Renmin University of China， said that China’s elderly population would be closer to 450 million by 2055， an all-time high in history.
“Based on the current data that China has 200 million senior citizens， retirement service market will reach 3 trillion yuan， with high-end senior care sector providing 50 million jobs，” said Wang Hong， Secretary of the Party Committee of Baoshan District， Shanghai City.
“China’s retirement industry still in its infancy， especially at the top-level design aspect，” said the abovementioned researcher. “There are a lot of uncertainties in the implementation of policies.”
Lack of Available Land
The Chinese government has incorporated the issue of aging into the overall national economic development plan by an integration of economic， legal and administrative measures.
“In fact， there are a lot of companies that are eager to enter into the retirement industry. However， most of them hesitate and wait，” said the researcher. “The main reason lies in the fact that local governments lack motivations to support the industry.”
In April， the Ministry of Land and Resources issued the opinions on the land usage for retirement service facilities， which articulated clearly the scope， classification and supply modes of land used for retirement service facilities for the first time. Pursuant to the opinions， the land usage for retirement service facilities should be incorporated into the national construction land supply plan.
“Since the lack of a clear classification for land for the senior service facilities， it is almost impossible to vitalize the conversion of inventory construction land usage. At the national level， many principled supportive policies are put forward.
However， due to the lack of detailed rules for the implementation of those polices， combined with the lack of motivation and enthusiasm to develop the retirement industry shown by local governments， it is difficult to realize the conversion of inventory construction land usage，” said the researcher.
“Besides， from the aspect of incremental construction land， the supply mode of land used for non-profit retirement service limits the social capital to enter into the sector.”
Housing costs in nursing homes is high， due to the BAI mode （bid ， auction and listing） of land used for senior retirement housing. “If nursing homes continue to acquire land through the mode， only wealthy seniors can afford the housing and services，” said an insider.
As China is stepping into an ageing society， the government must address the need to provide more housing for the elderly.
Besides， many Chinese white-collar workers， especially female workers， said that they wanted to retire early due to the dual stresses of work and daily life. In addition， with the development of urbanization， China has a large number of empty-nesters， especially in rural areas.
A majority of Chinese people surveyed said that housing is a more reliable way to finance retirement than having children， according to the result of a survey by ManulifeSinochem Life Insurance Co Ltd.
Although many people emphasized the importance of the social support for the senior care， China’s retirement industry put focuses on the families and communities that provide care service for the senior citizen， leaving limited room for enterprises to expand the market.
The retirement care-home industry is supported to have great market potential in an aging society. There are a lot of private companies involved in the retirement industry in coastal areas. However， many of those companies suffer consecutive losses， and Jiujiu Home for Seniors is one of them.
Established in 1999 in Ningbo in Zhejiang Province with an original capital investment of over 14 million yuan， Jiujiu Home for Seniors became the largest civil retirement company in the province. However， the company still has many problems， including years of net losses. “I will continue to run it as long as it can operate until the day when I am forced to give up，” said Ren Dingji， proprietor of Jiujiu Home for Seniors.
Many other retirement care-home enterprises also have had the same experience. According to an insider， the underlying problem lies in their limited financing power as civil companies.
According to Du Peng， the social service has become the bottleneck for the development of the social senior care service system. He said that in a bid to give a full play to the senior care function of social communities， the current staff system calls for a reform to break.
In China， the number of empty-nesters accounted for 49.7% of the elderly population in urban areas in 2013， while the rate reached up to 56% in large and medium-sized cities. Based on the data， if 5% of empty-nesters need the household service， it will create 5 million jobs， indicating a huge market with great potential.
Lack of Professional Talents
There is a huge demand in the retirement industry. However， the industry is short of professional talents. 90% of nurses involving in the care for the elderly resigned within three years after graduating from secondary vocational schools， according to a survey. That means 10% of nursing graduates stayed in the senior care sector for a long time.
According to an insider， the brain drain in the senior care sector is mainly due to the low salary level， unappealing to the young nurses.
In some cities， local governments rolled out a series of supportive policies to encourage the youth to work as nurses for the elderly， such as free training and talent treatment in the household registration.
The government should cooperate with companies to retain the talent， said the insider.
China should lower the cost of retirement home-care service to cater for the aging society. According to the advice from insiders， the authority should imitate Singapore’s policy to encourage the young to live with their parents or live nearby by virtue of subsidies and tax breaks.