Summary of Key Points
In the past, local governments were keen on attracting young people; now they've shifted their focus to attracting the elderly—a silent competition in the "silver economy" has begun. This is driven by China's massive elderly population of 320 million (by 2025), the annual pension expenditure of nearly 7 trillion yuan, and the continuous consumption generated by elderly people who travel for retirement (staying for months rather than just a few days). After the state introduced its first special policy on the silver economy, provinces such as Hainan, Yunnan, and Jilin have taken action, using three main approaches to attract the elderly: climate, healthcare, and quality of life. The competition is not just about short-term consumption but also about long-term industrial development, revitalizing existing resources, and enhancing the competitiveness of cities for the next 20 years.
Why the Shift from Attracting Young People to Attracting the Elderly? — The Silver Economy as a New Frontier
The reason for this shift is threefold:
1. Large Population with High Income: By 2025, the population over 60 years old will reach 320 million (23% of the total), and by 2035, it will exceed 400 million. The average monthly pension for retirees from enterprises is 3,350 yuan, while those from government agencies is 6,300 yuan, totaling nearly 7 trillion yuan in annual pension spending—elderly people have significant financial power.
2. More Sustainable Consumption: While ordinary tourists usually stay for only 3 days, elderly travelers can spend months, driving demand for housing, dining, healthcare, and wellness services. The silver economy is expected to grow from nearly 10 trillion yuan in 2025 to 30 trillion yuan by 2035 (accounting for 10% of GDP), with wellness tourism being the fastest-growing sector (up 217% in the past three years).
3. Policy Support: In 2024, the state issued its first special document on the silver economy, and subsequent policies (such as support for inter-regional retirement and integration of healthcare and elderly care) have given local governments more flexibility to act.
How Do Different Regions Attract the Elderly? — Three Approaches
Attracting the elderly is not just about offering benefits but about creating environments that make them want to stay. The main strategies include:
1. Competing on Climate:
- Northern regions use their cooler climates for summer retreats: Jilin has invested 100 million yuan in wellness facilities, Chengde offers free park entry and bus fares to elderly visitors from Beijing and Tianjin, and there is mutual recognition of retirement evaluations among these three cities; Heilongjiang includes summer tourism in its initiatives.
- Southern regions use their warmer climates for winter retreats: Hainan provides medical insurance for elderly travelers, Guangxi offers special trains and housing discounts, and Panzhihua promotes "sunshine wellness" to attract long-term residents.
2. Competing on Healthcare:
- Cities transform hospitals into attractions: Shanghai leads a regional alliance for elderly care, standardizing services and healthcare; Suzhou develops smart medical technologies (such as skin-to-skin electrocardiometers) and collaborates with Shanghai to share resources; Baoding offers low-cost rehabilitation services.
3. Competing on Quality of Life:
- Regions highlight their cultural heritage and a slow-paced lifestyle: Kaifeng designs travel itineraries centered around Song Dynasty culture and traditional Chinese medicine, while Fuyang transforms the Yingzhou West Lake into a wellness and homestay destination; Jingzhou partners with Yichang and Jingmen to integrate elderly care with tourism.
What Are the Long-Term Benefits of Attracting the Elderly?
Local governments aim for four key benefits:
1. Long-Term Consumption: For example, in Yunnan, a 54-square-meter apartment rents for 300 yuan per month, and the average monthly living cost for the elderly is less than 2,000 yuan, attracting them to stay longer and bringing their relatives and friends with them. In Guangxi, tourism-related spending on elderly care increased by 54.2% in the first seven months of 2025.
2. New Industrial Opportunities: The silver economy connects industries such as healthcare, rehabilitation, tourism, real estate, and home services. With more elderly residents, these sectors can thrive—companies like Taikang are building retirement networks, and developers like Vanke are converting existing housing into wellness communities.
3. Revitalizing Resources: Jilin plans to use vacant commercial housing for elderly care; in Yanji, non-local buyers accounted for 74.7% of house transactions at the spring real estate market in 2025, revitalizing idle properties.
4. Future Competitiveness: The upcoming retirement of generations born in the 1970s and 1980s means a large, highly educated, and consumer-driven market. Investing in the silver economy now ensures a foothold in this growing market; those who establish strong brands and services will gain a competitive advantage.
Is This Competition Easy? — Challenges at the Start, but Promising Prospects
Although interest is growing, there are challenges:
- Small Base: Although there were 84.316 million elderly travelers in 2024-2025, this is just a number of visits, not the actual number of residents; the industry is still in its early stages.
- Service Needs to Improve: Elderly people require more than just good weather or healthcare; they also need thoughtful services (such as convenient access to medication and community support).
However, the nature of the competition has changed. In the past, cities competed on their suitability for work and development; in the future, they will compete on their ability to provide a comfortable and trustworthy living experience for the elderly. Cities that can meet these needs will attract more families and become truly livable places.
(The entire analysis is written in plain language, without technical jargon, making it easy for non-financial readers to understand.)