China will “gradually raise” its retirement age for the first time since the 1950s to address its aging population and a shrinking pension fund.
The top legislative body approved a plan on Friday to increase the statutory retirement age: from 50 to 55 for women in blue-collar jobs and from 55 to 58 for women in white-collar roles.
Men’s retirement age will rise from 60 to 63.
Under the new policy, which starts on January 1, 2025, the retirement age will be incrementally increased over the next 15 years.
Retiring before the new statutory age will not be permitted, though workers can extend their retirement by up to three years.
Beginning in 2030, employees will also need to contribute more to the social security system to qualify for pensions, and by 2039, they will need 20 years of contributions.
The Chinese Academy of Social Sciences had projected in 2019 that the main state pension fund would be depleted by 2035—an estimate made before the economic impacts of the Covid-19 pandemic.
The new retirement age adjustments and pension policy were based on a comprehensive assessment of factors like life expectancy, health, population structure, education levels, and workforce supply, Xinhua reported.
China’s population has decreased for the second consecutive year in 2023, with a declining birth rate, while the average life expectancy has increased to 78.2 years.
The announcement has sparked mixed reactions online. Some users expressed skepticism and frustration, with one Weibo user commenting, “In the next 10 years, there will be another bill that will delay retirement until we are 80.”
Another user lamented, “Middle-aged workers face pay cuts and extended retirement ages, and those unemployed find it harder to get jobs.”
Conversely, some anticipated the change, noting that similar retirement trends are already seen in Europe. One user remarked, “This was expected.
Men in most European countries retire at 65 or 67, and women at 60. This will likely be the trend in our country too.”
Source-BBC
