China is set to raise its retirement age for the first time since the 1950s in response to an ageing population and a shrinking pension fund. The country’s retirement ages are currently among the lowest worldwide.
Men’s retirement age will increase from 60 to 63, while women in blue-collar jobs will see an increase from 50 to 55, and those in white-collar professions will retire at 58 instead of 55. These changes will take effect incrementally starting January 1, 2025, with adjustments made every few months over the next 15 years, as reported by Chinese state media.
Under the new regulations, retiring before the statutory age will not be permitted, although individuals can postpone their retirement by a maximum of three years. Starting in 2030, workers will also need to contribute more to the social security system to qualify for pensions, with a requirement of at least 20 years of contributions by 2039.
The Chinese Academy of Social Sciences has projected that the principal state pension fund may run out of resources by 2035, an estimate that predates the economic impacts of the Covid-19 pandemic.
The decision to adjust the retirement age and pension policy was made following a thorough evaluation of factors such as average life expectancy, health conditions, population demographics, education levels, and workforce availability.
The announcement has been met with skepticism and concern on Chinese social media. Some users expressed worries about future increases in retirement age, while others noted current challenges faced by middle-aged workers, such as pay cuts and difficulties in finding employment.
Nonetheless, some commentators indicated they were not surprised by the decision, comparing China’s future retirement norms to those of many European countries where men typically retire around age 65 or 67, and women at 60.
China’s population has experienced a decline for the second year in a row in 2023 due to a decreasing birth rate. Meanwhile, the average life expectancy in China has increased to 78.2 years, with projections indicating that by 2040, nearly one-third of the population—approximately 402 million people—will be aged over 60, compared to 254 million in 2019.