China is poised to transform its demographic challenge into a strategic economic advantage through its forthcoming 15th Five-Year Plan (2026-2030), marking a fundamental shift in how the nation addresses population aging. Rather than treating elderly citizens merely as recipients of social welfare, the new framework positions them as active contributors to economic growth through three key mechanisms: long-term care insurance expansion, private pension system modernization, and targeted development of the silver economy.
Current statistics reveal the scale of this demographic transformation: China now counts 310 million citizens aged 60 or above, representing 22% of the total population. Within this group, 220 million have reached 65 years or older. The nation’s life expectancy has climbed to 79 years during the 14th Five-Year Plan period (2021-2025), reflecting a 1.07-year increase from 2020 and standing five years above the global average.
The Communist Party of China’s recently published recommendations outline specific measures to operationalize this strategic pivot. These include enhancing the national pooling mechanism for basic pension insurance and developing a multi-tiered, multi-pillar retirement security system designed to progressively elevate citizens’ post-retirement income levels.
Critical infrastructure adaptations form another cornerstone of the strategy. The plan mandates comprehensive upgrades to public facilities, ensuring they become both barrier-free and elderly-friendly. Simultaneously, it promotes wider implementation of long-term care insurance programs across Chinese provinces.
Workforce policy reforms represent equally significant components. The government will implement gradual retirement age adjustments while relaxing age restrictions for employment and social insurance participation. These measures aim to better utilize senior workers’ capabilities and stimulate silver economy growth.
Recent economic analysis quantifies the opportunity: China’s silver economy currently generates approximately 7 trillion yuan ($996.1 billion), accounting for 6% of national GDP. Projections indicate this could expand to 30 trillion yuan by 2035, potentially representing 10% of China’s total economic output.
Experts emphasize that continued enrichment of elderly services, coupled with strengthened insurance systems and enhanced workplace protections for older employees, will be essential throughout the next five-year implementation period to fully realize this demographic-economic strategy.