China has announced an increase in the statutory retirement age for the first time since the 1950s, responding to the challenges posed by an aging population and a contracting workforce. The current retirement ages in China are among the lowest globally, and under the new measures approved by the top legislative body, men will have their retirement age raised from 60 to 63.
For women, the retirement age will increase from 50 to 55 for those in blue-collar jobs and from 55 to 58 for white-collar workers. The adjustments will take effect on January 1, 2025, with changes implemented gradually every few months over the following 15 years. Early retirement will no longer be permissible, although individuals can choose to delay their retirement by a maximum of three years.
Moreover, starting in 2030, employees will be required to contribute more to the social security system to qualify for pensions. By 2039, workers will need to have contributed for at least 20 years to access their pension benefits.
The Chinese Academy of Social Sciences projected in 2019 that the primary state pension fund could be depleted by 2035, a forecast made prior to the economic impacts of the Covid-19 pandemic. The decision to modify retirement ages and pension policies comes after a thorough evaluation of various factors, including average life expectancy, health trends, population structure, education levels, and workforce availability in China.
However, the announcement has been met with skepticism and concern online. Some social media users expressed fears that future policies might push the retirement age even higher. Others voiced grievances about pay cuts for middle-aged workers and increased difficulties for the unemployed in finding jobs. While there is a sense of discontent, some acknowledged the inevitability of such changes, citing retirement ages in European countries as a reference point.
China’s population has been on a decline for the second year in a row in 2023 amid a falling birth rate. At the same time, the average life expectancy in the country has increased to 78.2 years. Officials warn that by 2040, nearly one-third of the population, or approximately 402 million individuals, will be over the age of 60, a significant increase from 254 million in 2019.