China will gradually raise its retirement age for the first time since the 1950s, in response to the challenges of an aging population and a shrinking pension fund. On Friday, the country’s top legislative body approved a proposal to increase the retirement age for women in blue-collar jobs from 50 to 55, and for women in white-collar jobs from 55 to 58. Men will see their retirement age rise from 60 to 63.
China faces a demographic crisis due to its slowing economy, reduced government benefits, and the effects of its decades-long one-child policy, as noted by China correspondent Laura Bicker. The pension fund is running dry, and the country has limited time to build sufficient reserves to support its growing elderly population.
Over the next decade, about 300 million people, currently aged 50 to 60, are set to exit the workforce. This age group, comparable to the size of the U.S. population, poses a significant challenge for the nation's pension system.
China’s current retirement ages are among the lowest in the world. The new plan, which will take effect on January 1, 2025, will gradually raise retirement ages over a 15-year period. According to state media, retiring before the statutory age will no longer be permitted, although individuals may delay retirement by up to three years. Starting in 2030, employees will also need to contribute more to the social security system, and by 2039, 20 years of contributions will be required to qualify for pensions.
A 2019 report by the Chinese Academy of Social Sciences projected that the main state pension fund could run out of money by 2035—an estimate made before the Covid-19 pandemic further impacted China's economy. The decision to raise retirement ages was based on factors such as life expectancy, population structure, workforce availability, and education levels.
Despite the necessity of these changes, the announcement has sparked criticism on social media. Some users expressed concerns about further delays in retirement, while others pointed to the struggles of middle-aged workers facing pay cuts and job insecurity. Still, many acknowledged that the reforms were inevitable, aligning with global trends where men retire between 65 and 67, and women around 60 in many European countries.
China’s population has declined for the second year in a row, while life expectancy has risen to 78.2 years. According to the World Health Organization, by 2040, nearly a third of China's population—about 402 million people—will be over the age of 60, up from 254 million in 2019.
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