China has announced plans to raise its retirement age for the first time since the 1950s, as the country faces the challenges of an ageing population and a decreasing pension fund. The new proposals, approved by the top legislative body, will alter retirement ages from 60 to 63 for men, and from 50 to 55 for women in blue-collar jobs, and from 55 to 58 for women in white-collar positions.
Effective from January 1, 2025, these changes will be implemented in phases over the next 15 years. Additionally, retiring before the official age will not be permitted, although individuals may opt to postpone retirement by a maximum of three years. Starting in 2030, workers will need to contribute more to the social security system to qualify for pensions, with the requirement of 20 years of contributions taking effect by 2039.
This decision comes as reports from the Chinese Academy of Social Sciences suggest that the nation’s primary state pension fund could deplete by 2035, a concern that has intensified following the economic impact of the Covid-19 pandemic. The adjustments to retirement ages and pension policies have been shaped by an evaluation of various factors, including life expectancy, health conditions, population demographics, education levels, and workforce availability.
The announcement has led to mixed reactions among the public on social media, with some expressing skepticism and dissatisfaction. Comments include worries about future increases in retirement age and the difficulties faced by middle-aged workers regarding job stability and reduced pay. However, others predicted this change and noted that retirement ages in many European countries are already higher, indicating a potential trend for China as well.
China’s population experienced a decline for the second consecutive year in 2023, attributed to a falling birth rate. Meanwhile, the average life expectancy has risen to 78.2 years, and projections by the World Health Organization estimate that by 2040, nearly a third of China’s population—approximately 402 million people—will be over the age of 60, up from 254 million in 2019.