In China’s northeastern rust-belt provinces—Liaoning, Jilin, and Heilongjiang—pension fund shortfalls have emerged as a significant long-term challenge. These provinces, which have some of the highest ageing rates in the nation, are facing economic and financial difficulties, including a slowdown worse than the national average. The region, home to 99 million people, borders North Korea, Russia, and Mongolia, and many retirees in these provinces would struggle to survive without financial support from wealthier coastal regions.

Last year, the central government transferred 180 billion yuan (US$25.4 billion) to these three provinces to cover pension fund gaps. This figure represents more than half of their total tax revenues, which stood at 342.9 billion yuan, according to the Ministry of Finance.

Nationwide, only half of China’s provincial regions recorded pension fund surpluses, with Guangdong, Beijing, Jiangsu, and Anhui being the top contributors. Guangdong, China’s largest provincial economy, which has a lower proportion of elderly citizens (15% of its 120 million population), contributed the most, handing over 115.8 billion yuan to the central government.