China plans to gradually raise its retirement age for the first time since the 1950s to address an aging population and a shrinking pension fund. On Friday, the top legislative body approved a proposal to increase the statutory retirement age for women in blue-collar jobs from 50 to 55, and from 55 to 58 for women in white-collar roles. Men’s retirement age will rise from 60 to 63.
Starting January 1, 2025, the retirement age will increase incrementally every few months over 15 years, as reported by Chinese state media. Xinhua also noted that early retirement will be prohibited, although workers can delay their retirement by up to three years.
Additionally, starting in 2030, employees will be required to make higher contributions to the social security system in order to qualify for pensions. By 2039, workers will need 20 years of contributions to access their pensions.
A 2019 study by the state-run Chinese Academy of Social Sciences predicted that China’s primary pension fund would be depleted by 2035, and this forecast was made before the economic impacts of the COVID-19 pandemic. Xinhua stated that the plan to adjust retirement ages and pension policies was based on factors such as life expectancy, health, education, and workforce availability.
However, the announcement has sparked skepticism and discontent online. Some Chinese social media users expressed frustration, with one suggesting that in a decade, retirement might be pushed to age 80. Another user lamented the tough situation for middle-aged workers facing wage cuts and higher retirement ages.
China’s population, which has been declining for two years, is aging rapidly, with life expectancy reaching 78.2 years. The country is grappling with demographic challenges stemming from a slowing economy, fewer government benefits, and the long-term effects of its one-child policy. Over the next decade, around 300 million people currently aged 50 to 60, China’s largest age group, are expected to retire.
