China is set to increase its retirement age starting next year in response to a declining population and an aging workforce. The country currently has one of the lowest retirement ages among major economies. The new policy, approved by the Standing Committee of the National People’s Congress, will be phased in over 15 years, with the retirement age for men raised to 63 and for women to either 55 or 58 based on their occupations. Currently, the retirement age is 60 for men, 50 for women in blue-collar jobs, and 55 for women in white-collar positions.
The decision to raise the retirement age comes as China grapples with a rapidly aging population and a strain on its pension fund. Demographic experts argue that the previous retirement ages, set in the 1950s when life expectancy was much lower, are no longer sustainable. By 2035, China is expected to have over 400 million people over the age of 60, leading to significant pressure on the public pension fund.
The shift in retirement age will be implemented gradually based on individuals’ birthdates, with calculations determining specific retirement ages for each person. This adjustment is seen as a necessary step to address the growing gap between the number of retirees and the working-age population. The challenge of an aging population and shrinking workforce is not unique to China, as other countries, including the US, are also facing similar issues with their social security systems.
While the policy change may bring short-term challenges, including concerns about youth unemployment and economic impact, many Chinese citizens view it as a necessary adjustment to support the country’s aging population. Some individuals expressed mixed feelings about the change, with concerns about reduced leisure time but an acknowledgment of the broader demographic and economic realities driving the decision.
Overall, the decision to raise the retirement age signals a proactive approach by China to address the demographic shift and ensure the sustainability of its pension system in the face of an aging population and declining birth rates.
