Lujiazui Forum addresses silver economy and finance for elderly care

Solutions and alternatives were discussed on finance for aging people and how to provide the elderly with care services and risk management at the Lujiazui Forum on Thursday.

"The aging population is not a burden, but an asset to society," said Zhou Hanmin, a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference (CPPCC). "Society has to be responsible for them. This is the essence of our discussion."

According to Zhou, the aging population is of urgent concern. Of the 1.41 billion people in China, 297 million are over the age of 60, accounting for 21.1 percent of the population, and 210 million are over the age of 65, accounting for 15.4 percent.

"China is now a typical medium-aged society according to the relevant standards of the United Nations," Zhou said.

According to Cai Xiliang, vice chairman and president of China Life Insurance (Group) Co, the current problem revealed in the aging industry is the inadequate development of home-based elderly services and comprehensive services, including those from medical institutions and elderly institutions.

"More than two-thirds of senior care facilities are in the suburbs, but three-fourths of the elderly population live in urban areas. This reflects the problem of mismatch in the supply of senior care facilities, " Cai said.

Seiji Imai, chairman of Mizuho Financial Group, cited his own country, Japan, as an example of a series of suggestions, including the setting up of a social care system with government support through social security, with housing support included.

"China's huge market size has great potential, and we will further expand the pension pool to include insurance coverage, putting situations like cognitive impairment in the covering list, to help the elderly live a healthier and safer life," Seiji said.

"I see two important reasons to include international assets in Chinese pension portfolios," said Sebastian Wood, chairman of China affairs for Schroders Group. "First, we expect China's domestic pension market to grow much faster than its capital markets. In addition, global diversification can bring significant benefits to the portfolios of Chinese pension plan members."

Gu Shu, chairman of the Agricultural Bank of China, said that as a bank, it should make the use of social security cards and health insurance cards more convenient, such as having one card multi-purpose, cross-provincial use, and providing more choices of pension products, such as deposits, wealth management, and funds.

The senior care industry also faces a shortage of talent, according to Zhao Yonggang, president of China Pacific Insurance (Group) Co.

"We need to strengthen the construction of a management and service team that can support the operation of senior care communities. In the future, we should strengthen the cultivation of high-level talent in the senior care industry, so that more outstanding young talent can engage in the industry," Zhao said.

In January this year, the nation issued relevant guide documents on developing an aging economy to enhance the well-being of the elderly. Measures suggested covered areas such as home care, community support, and meal services.

At present, China's silver economy is about 7 trillion yuan (US$964 billion), accounting for about 6 percent of gross domestic product. By 2035, it is expected to reach about 30 trillion yuan, accounting for about 10 percent of GDP, according to official data.