Communist China’s pension system is facing a growing crisis of confidence. Over 40% of flexible workers—like delivery drivers and livestreamers—are opting out of the national pension program. In 2024, social security revenue rose 5.2% to RMB 11.89 trillion (USD 1.65 trillion), but spending increased 7% to RMB 11.99 trillion (USD 1.67 trillion), creating a RMB 100 billion (USD 14 billion) deficit.

The gap is most severe in the northeast, where Liaoning, Jilin, and Heilongjiang are projected to face a RMB 575 billion (USD 79 billion) shortfall by 2025. With high costs, low trust, and doubts about future payouts, many young people are opting out, further weakening consumption.

It’s now clear the hole is too deep to fill. The Chinese Communist Party has long drained pension funds, relying on short-term fixes and opaque transfers to delay the inevitable. This is no longer merely a crisis of confidence in the pension system — it has become a fundamental reckoning with the legitimacy and credibility of the regime itself.