HONG KONG — Every Wednesday, retired Zhang Zhili makes an hour-long bus journey to an education center in Beijing, which offers her the chance to embrace the vibrant rhythms of African drum music. In a lively classroom filled with fellow retirees, each beat resonates, elevating her spirits and creating a sense of camaraderie among them.
At 71, Zhang has discovered happiness and friendship at what is referred to as the “elderly university.” In addition to African drumming, she participates in social dance classes, paying around 2,000 yuan (approximately $280) for two courses this semester. The confidence she feels while dancing, standing tall in class, gives her a sense of pride. After her lessons, she enjoys spending time with her new friends.
“When we get old, what do we need?” Zhang reflects. “To love ourselves.”
Older individuals in China are increasingly seeking alternatives to traditional nursing homes, driven by fears of abandonment and concerns about care quality. This shift is fueling a burgeoning sector of universities, home care services, and community programs that cater specifically to the elderly. Although many providers face challenges in profitability, they continue to operate, recognizing the potential within this expanding market.
China’s population is aging at a rapid pace. As of last year, approximately 297 million people aged 60 and over made up more than one-fifth of the population. Projections indicate that by 2035, this figure could surpass 400 million, accounting for over 30% of all Chinese citizens. This demographic shift is driving a surge in products and services tailored to older adults, referred to as the silver economy. Research estimates this market will grow from about 7 trillion yuan (around $982 billion) to nearly 30 trillion yuan (about $4.2 trillion) by 2035, expanding its economic share from 6% to roughly 10% according to analysts at China’s State Information Center.
Du Peng, dean of the School of Population and Health at Renmin University in Beijing, stated that the government is broadening its focus to include basic care services for all elderly individuals, not just those without familial assistance. Last year, officials published a comprehensive list of essential care services meant to be uniformly available, which includes evaluations for abilities in seniors over 65, alongside financial support for family members caring for disabled relatives.
Cultural values surrounding filial piety play a vital role in China, with the majority of older people aspiring to age at home with family after retiring, which generally occurs between the ages of 50 and 60—one of the youngest retirement ages among major global economies. Many retirees take on roles in caring for grandchildren, and nursing homes often carry the stigma of abandonment unless in cases of severe disability.
In January, new governmental guidelines aimed to enhance home care services, including meal deliveries and specialized products for older adults. These initiatives emphasize enriching their lives through educational opportunities.
Home-based services present a more economical alternative to nursing homes, relieving families of the financial burden of accommodation, according to Du. He noted that most older Chinese individuals are relatively healthy and may prefer cultural enrichment rather than traditional care related to disabilities.
Cai Guixia, a 60-year-old participant, has embraced her passion for African drumming and modeling classes. She believes that she would feel “forsaken” in a standard nursing home setting and prefers the idea of hiring a domestic helper.
Liu Xiuqin, who runs two care centers, identified a business opportunity to meet these growing demands. Having invested more than 800,000 yuan (approximately $112,000) to open an educational facility in Beijing, Liu now serves around 150 students who partake in courses ranging from dance to yoga for an affordable 1,000 yuan ($140) each semester. Her organization also hosts events to foster social interaction among students.
Expecting to reach break-even within the next year, Liu remains optimistic about the future of her enterprise, knowing that the generation born post-1960 is more focused on quality of life and health compared to previous generations. “It’s not about making quick money,” she remarked. “It requires persistence.”
However, turning a profit remains a challenge for various businesses within the silver economy. In Guangzhou, Wu Tang co-founded a school after his previous business suffered due to a downturn in the real estate market. Although his school offers courses designed to help individuals realize neglected dreams, he has yet to reach profitability and contends with competition from lower-cost government programs.
Cui Yang operates a care station in Beijing that provides essential services such as home haircuts and accompaniment for medical visits, but even with government support, her business is operating at a loss. Without subsidies, she is concerned that it would be unsustainable.
The difficulties are not confined to smaller operators. Wu Wenjing, who oversees home care for a subsidiary of China Everbright Group in Chongqing, reported that her operation has been unprofitable for 13 consecutive years, with losses amounting to 1 million yuan ($140,000) annually, despite employing 70 caregivers who assist with rehabilitation and therapy. Wu remains hopeful, aiming for financial stability in five years, encouraged by governmental support for the elder care industry.
“The spring of China’s elderly care business has finally come,” she said, optimistic about the future.
A variety of enterprises are keen to capitalize on this state-supported market, including property developers and insurance firms, which have established high-end living communities featuring amenities such as entertainment rooms and dining services.
Efforts are also underway to address dementia care through cognitive assessments and staff training in memory clinics. Pharmaceutical companies are actively researching treatments for Alzheimer’s and other forms of dementia.
Some unused schools are transitioning into care facilities for the elderly, responding to the nation’s declining birthrate.
Government involvement in boosting the silver economy is showing results, as data indicates a doubling of care facilities from 2019 to a count of 410,000 by June of this year.
Despite these advancements, concerns remain regarding the financial resources of many elderly individuals. A national survey revealed that older adults had a median annual income of only 11,400 yuan ($1,574), with significantly lower earnings in rural areas. Approximately one in ten seniors lives under the poverty line, with conditions particularly dire for those in western China.
The silver economy in China is still emerging, according to an economist. He noted that many elderly citizens lack adequate insurance to cover their medical needs, restricting their purchasing power. Building skilled industries with a focus on senior products and trained personnel will take time, and he advocates for tax incentives and investment in workforce training to help.
“There are potential opportunities here, but it’s clear that much work remains ahead,” he concluded.
