China To 'Gradually Raise Retirement Age' As Ageing Population Strains Pension Fund
The plan to raise the retirement age has been in the works for several years, driven by China’s dwindling pension budget.
China will gradually increase its statutory retirement age over the next five years to address the challenges posed by its ageing population and strained pension system, BBC has reported.
According to the report, China’s retirement age remains one of the lowest in the world: 60 for men and 55 for women working white-collar jobs, and 50 for working-class women. The life expectancy in the country has now risen to 78 years, from 36 years at the time of the Communist Revolution in 1949, the report said. At the same time, the country’s population has fallen for the second consecutive year as the birth rate continues to decline.
The plan to raise the retirement age is one of the resolutions adopted at the recent Third Plenum, a top-level Communist party meeting held every five years.
The party's central committee stated in a key policy document highlighting the proposed reforms that “with the principle of voluntary participation with appropriate flexibility”, the country will “gradually raise the statutory retirement age in a prudent and orderly manner”.
The statement did not specify the exact increase. However, a China Pension Development Report released at the end of 2023 suggested that "65 years old may be the final result after adjustment".
The plan to raise the retirement age has been in the works for several years, driven by China’s dwindling pension budget.
The South China Morning Post, quoting analysts, said this could create further pressure on the job market, and the move might prove to be unpopular.
Peng Peng, executive chairman of the Guangdong Society of Reform, a think tank affiliated with the southern province’s government, noted that delaying retirement could be a double-edged sword in the current economic climate.
“It could reduce the financial burden on local governments, but it might also increase employment pressure, which is a typical example of the complexity of current reforms,” he said, according to the South China Morning Post.
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