With the nation's financial center bracing for the challenges posed by its rapidly aging society, a local district in Shanghai has introduced a pilot program to help retired people improve their financial footing by renting out their property.
The program, which was initiated by the Putuo District Community Service Center, Shanghai Real Estate Entrepreneur Association and several real estate companies, effectively allows retired people in Putuo district to rent out their property to raise money to pay for accommodation at homes for the elderly.
They will also be allowed to swap apartments, either to live on lower stories or in cheaper rooms.
Shanghai's version of the program is a variation on a similar scheme that has been used in other parts of the country, Shi Zhaotong, director of the program, said.
Statistics show there are more than 145 million people in China who are older than 60, or about 11 percent of the population. By 2050, there will be 420 million, or about a quarter of the population.
And Shanghai's elderly population is particularly large. By the end of last year, more than 2.75 million people in the city were 60 or older, or about 20.1 percent of the population. By 2020, a third of Shanghai will be 60 or older.
Some of them have little savings and can barely live on their pensions, Shi said. However, many of them also own low-income apartments in public housing projects.
Under the program, old people can transfer their property ownership certificates to insurers or the government and then rent out their rooms. When they pass away, their property will be transferred to the holding parties.
A supervision department to oversee the project will be set up soon. And the program will help refurbish properties that are in bad condition and equip them with better furniture and electric appliances to ensure they are attractive to potential tenants.
However, the plan has caused wide disagreement because children are considered to be lacking in filial piety if they allow their parents to take such matters into their own hands.
"The new program will allow old people to make some money without giving up their property," Shi said.
(China Daily October 31, 2007)
