By D. Maan, Jadetimes News
China to Gradually Increase Retirement Age to Address Aging Population and Pension Strain
China is set to gradually raise its statutory retirement age over the next five years in an effort to manage its aging population and strained pension system. The country has seen a significant increase in life expectancy, now averaging 78 years, compared to just 36 years in 1949 when the Communist revolution occurred. Despite this, China’s retirement age remains one of the lowest globally, with men retiring at 60, women in white collar jobs at 55, and working class women at 50.
The decision to raise the retirement age is part of a series of resolutions adopted during the Third Plenum, a top-level Communist party meeting held every five years. According to a key policy document from the party’s central committee, the reform will be implemented "in line with the principle of voluntary participation with appropriate flexibility," and will be carried out in a "prudent and orderly manner." However, the document did not specify the exact new retirement age or the timeline for the changes. A China Pension Development Report released at the end of 2023 suggested that the final retirement age might be set at 65.
This plan has been under consideration for several years due to the dwindling pension budget. In 2019, the state-run Chinese Academy of Social Sciences warned that the main state pension fund could run out of money by 2035, a projection made before the economic impact of the Covid-19 pandemic. Additionally, China's population has continued to decline for the second consecutive year in 2023, as birth rates remain low.
The state run Global Times newspaper quoted Chinese demographers who highlighted the importance of "voluntariness" and "flexibility" in the retirement age plan, acknowledging that a one size fits all policy is not feasible.
However, the plan has sparked skepticism on Chinese social media. On Weibo, a platform similar to X, one user expressed concerns: "Those who wish to retire early are burnt out from their laborious jobs, but those in comfortable, lucrative roles will not choose to retire. What kind of jobs will the younger generation end up with?" Another user pointed out that delayed retirement could mean delayed access to pensions, adding, "There is no guarantee that you would still have a job before the statutory retirement age."
As China navigates these demographic and economic challenges, the gradual increase in retirement age is a critical step in ensuring the sustainability of its pension system and addressing the needs of an aging population.
