China has announced an increase in its retirement age for the first time since the 1950s in a move aimed at addressing the challenges of an aging population and a shrinking pension fund. Currently, China has some of the lowest retirement ages globally, with men retiring at 60 and women at varying ages based on their job classifications.
Under the new proposals approved by the top legislative body, the retirement age for women in blue-collar jobs will rise from 50 to 55, while for white-collar workers, it will increase from 55 to 58. These changes will take effect on January 1, 2025, with gradual increments occurring every few months over the next 15 years.
The new regulations stipulate that retiring before reaching the legal age will not be permitted, although individuals can choose to delay retirement by up to three years. Starting in 2030, employees will also be required to contribute more to the social security system to qualify for pensions, with a total contribution period of 20 years by 2039.
The decision follows warnings from the state-run Chinese Academy of Social Sciences that the main state pension fund could be depleted by 2035, a projection made before the economic impacts of the Covid-19 pandemic were fully realized.
The policy adjustments were informed by an analysis of various factors, including life expectancy, health, population demographics, education levels, and workforce availability. However, the announcement has sparked skepticism and discontent among some Chinese citizens, with comments expressing concerns over potential future increases in retirement age and economic pressures on middle-aged workers.
As the nation’s birth rate continues to decline and average life expectancy rises to 78.2 years, projections indicate that nearly one-third of China’s population, approximately 402 million people, will be over 60 by 2040, a significant rise from 254 million in 2019.