China’s retirees are spending more, but facing age barriers

China's retirees are increasingly spending money, yet face limitations due to their age. A retired accountant from Zhejiang province, Zhao Xin, was denied access to a swimming pool at the age of 66 because pool staff believed it could not manage the risks associated with older individuals exercising. Zhao lamented that once he retired, he found he could spend money but was often barred from doing so.

The retirement cohort of Chinese individuals born in 1960, during the Great Famine, is now entering their peak retirement years of 60 to 70. This demographic boom is driving rapid growth in spending by China's older population, spanning areas like rail travel, digital devices, and automobiles. However, this surge in consumer activity is also placing strain on pension funds.

Experts argue that society's age bias hinders the development of China's silver economy, which is seen as a key driver of future economic growth. Zhou Hong, an expert at the Shanghai Association for Elderly Care Services, noted that over 20 million babies were born annually during the post-Great Famine baby boom, and this generation now has leisure time, energy, and financial resources to spend.

However, Zhou warned that stereotypes equating older people with "high risk" or "objects of care" create significant age discrimination, affecting access to services and employment opportunities.

Recent data from UnionPay shows a staggering increase in spending by older consumers in 2023. Digital device purchases rose by over 200% year-on-year, while rail travel spending jumped by more than 500%. These figures indicate the significant potential of the silver economy to fill gaps in off-peak venues, from shopping malls to theaters. Yet, widespread age discrimination, evident in policies like a recruitment announcement by the Shanghai Bar Association limiting employment to experts under 60, impedes this potential.