China Raises Retirement Age for First Time Since 1950s to Address Ageing Population

International News : China Raises Retirement Age for First Time Since 1950s to Address Ageing Population

China has announced plans to raise its retirement age for the first time since the 1950s, responding to the challenges of an ageing population and a strained pension system. The country’s top legislative body approved the gradual increase, which will take effect from January 1, 2025. Under the new rules, retirement ages for women in blue-collar jobs will rise from 50 to 55, while those in white-collar jobs will see an increase from 55 to 58. For men, the retirement age will move from 60 to 63.

China’s current retirement ages are among the lowest globally, and the reform aims to tackle the demographic crisis as the country faces a shrinking workforce and rising life expectancy, now averaging 78.2 years. The plan will be implemented gradually over the next 15 years, with retirement ages increasing every few months. Additionally, starting in 2030, employees will be required to make more contributions to the social security system, with a requirement of 20 years of contributions by 2039 to qualify for pensions.

The change comes amid concerns about the sustainability of China’s state pension fund, which is projected to run out of money by 2035, according to the Chinese Academy of Social Sciences. The economic impact of the COVID-19 pandemic has further exacerbated these financial pressures.

The decision has received mixed reactions from the public. Some social media users on platforms like Weibo have expressed frustration, citing concerns about employment challenges for middle-aged workers and the potential for further retirement delays in the future. Others noted that this shift was expected, comparing it to retirement norms in Europe, where men and women typically retire later.

China’s demographic issues have been deepening due to decades of the one-child policy and a declining birth rate. A 2023 report revealed that China’s population had fallen for the second consecutive year. By 2040, nearly a third of the population, around 402 million people, will be over 60, creating additional pressure on the country’s social welfare system. As China grapples with these demographic challenges, the government’s ability to balance pension reforms and care for the elderly remains a critical issue for the future.

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