BEIJING // The luxury cars, gleaming shopping centres and high-end apartments provide brash evidence of the Chinese capital's rush into the modern world, but in their shadow toils a grey workforce that has missed out on the economic boom. These are the pensioners who need to keep on working to get by.
They are easy to spot. Some fish through waste bins looking for anything with value or stand quietly at subway entrances collecting newspapers from commuters. Others sell drinks to tourists for two yuan (Dh1.15) apiece. Others set up tiny stalls on the pavement hawking insoles for shoes.
Guo Yutian is one such elderly worker. As tourists snap pictures at the back of the Forbidden City, the sprightly 84-year-old widower instead looks out for plastic bottles to collect and sell for recycling.
"I do this to get some exercise, and to earn some money to buy vegetables and other food," said the former petrol station worker.
Mr Guo can sometimes find about 100 bottles during the two hours or so he spends collecting them each day. He makes around 0.12 yuan per bottle, which in a month translates to 200 to 300 yuan to supplement his modest pension.
Studies have indicated that more than three-quarters of China's elderly people take additional work after they retire, a figure that ties in with research published last month in the China Journal of Social Work that said only a quarter of elderly Chinese people received a pension.
Many older workers were laid off when state enterprises shed workers during reforms in the 1990s. With few or no qualifications, they had little chance of competing with the younger generation in what was becoming a free market for workers, a far cry from the times when the Communist state assigned people to jobs.
Ma Shuhua, a 76-year-old widow, finds it "very hard" to get by on her pension, the size of which she is too embarrassed to reveal. Her expenses include a monthly rent of 1,300 yuan.
"I don't have enough money for living, so I have no choice. I have to work to earn some money," she said, standing beside the tricycle from which she sells bottles of water and soft drinks in central Beijing. She sets up shop in an area busy with passing tourists and can make 200 yuan a day.
Ben Li, an assistant professor in the Department of Applied Social Studies at the City University of Hong Kong who researches issues affecting elderly people, said those who did not hold senior or government jobs were especially likely to have little pension provision.
"We see old adults who may have very difficult financial circumstances," he said.
It may be harder for old people today to rely on their children to look after them than in the past. Mr Li said the traditional notions of filial piety, the ideas of respecting and caring for elders that stem from the teachings of the ancient philosopher Confucius, were not necessarily weakening in modern China. But the increasing mobility of workers meant it was not possible for many children to look after their parents.
There are, however, believed to be benefits to working into old age.
"When people talk about successful ageing, they are interested in whether old adults get engaged with life. That's one of the successful components," he said.
"Even going out and collecting bottles would be better than sitting at home, although older adults who collect bottles may not lead a good life financially."
China's grey workforce seems likely to expand, because the number of over 60s is predicted to grow from 178 million now to 200 million in 2015 and 400 million in 2050.
It is against this backdrop that calls have been made for the retirement age, typically 50 or 55 for women and 60 for men, to be increased.
The official retirement age already means little for many.
Liu Yuhua, 72, makes about 20 to 30 yuan a day selling bottles of water, also from the back of a tricycle, a useful addition to her monthly 500 yuan pension and one that helps pay for her high blood pressure medications. She said she did not mind the work.
"It's OK for me to come outside and enjoy the life here. When I stay at home, it's such a small place. I am happy to come out and see people," she said.
dbardsley@thenational.ae
If you go...
Flying
There is no simple way to get to Punta Arenas from the UAE, with flights from Dubai and Abu Dhabi requiring at least two connections to reach this part of Patagonia. Flights start from about Dh6,250.
Touring
Chile Nativo offers the amended Los Dientes trek with expert guides and porters who are met in Puerto Williams on Isla Navarino. The trip starts and ends in Punta Arenas and lasts for six days in total. Prices start from Dh8,795.
Teaching in coronavirus times
Killing of Qassem Suleimani
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Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Killing of Qassem Suleimani
NBA Finals results
Game 1: Warriors 124, Cavaliers 114
Game 2: Warriors 122, Cavaliers 103
Game 3: Cavaliers 102, Warriors 110
Game 4: In Cleveland, Sunday (Monday morning UAE)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Duterte Harry: Fire and Fury in the Philippines
Jonathan Miller, Scribe Publications
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- Field supervisor: Dh9,000 to Dh12,000
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Getting there
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Super Bowl LIII schedule
What Super Bowl LIII
Who is playing New England Patriots v Los Angeles Rams
Where Mercedes-Benz Stadium in Atlanta, United States
When Sunday (start time is 3.30am on Monday UAE time)
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