China has announced an increase in the retirement age for the first time since the 1950s, addressing the challenges posed by an ageing population and a decreasing pension budget. As part of the newly approved proposals, men will see their retirement age rise from 60 to 63. For women in blue-collar jobs, the retirement age will move from 50 to 55, while for women in white-collar jobs, it will change from 55 to 58.
The new retirement ages will take effect starting January 1, 2025, with adjustments occurring every few months over the next 15 years, according to state media reports. Early retirement will not be permitted, although individuals can postpone retirement by a maximum of three years.
In addition, starting in 2030, employees will be required to contribute more to the social security system to qualify for pensions. By 2039, individuals will need to have made contributions for at least 20 years to access their pensions.
The Chinese Academy of Social Sciences previously warned that the country’s primary state pension fund could be depleted by 2035, an estimate made before the economic impact of the Covid-19 pandemic.
The retirement age increase and pension policy adjustments were based on a thorough evaluation of factors such as average life expectancy, health, population demographics, education levels, and workforce supply in China. However, the announcement has sparked skepticism and discontent among citizens online. Some users expressed concerns about future increases, predicting that retirement could ultimately be pushed to as late as 80 years old.
Others voiced their frustration over the economic pressures facing middle-aged workers, while some remarked that such changes were anticipated, pointing out that retirement practices in many European countries reflect similar trends.
China’s population has experienced a decline for the second consecutive year in 2023, coinciding with a decreasing birth rate. Meanwhile, life expectancy in the country has increased to 78.2 years. Officials estimate that by 2040, nearly a third of China’s population, around 402 million people, will be over the age of 60, up from 254 million in 2019.