China will implement a major policy change starting January 1, 2025 by raising the retirement age for workers, a move aimed at addressing the country's demographic challenges and economic pressures. The Standing Committee of the National People’s Congress approved this proposal on September 13, 2024, marking the first adjustment in decades.
Currently, China's retirement ages are among the lowest globally, set in the 1950s when life expectancy was around 40 years. Men retire at 60, women in white-collar jobs at 55, and women in blue-collar jobs at 50. The new policy will gradually increase the retirement age over a 15-year period. By 2040, men will retire at 63, women in white-collar jobs at 58, and women in blue-collar jobs at 55.
This change is driven by the need to mitigate the economic strain caused by a shrinking workforce and an aging population. As Xiujian Peng, a senior research fellow at Victoria University, noted, "We have more people coming into the retirement age, and so the pension fund is facing high pressure. That’s why I think it’s now time to act seriously."
The demographic crisis is stark: by the end of 2023, nearly 300 million people in China were over the age of 60, a number projected to rise to 400 million by 2035. This shift places immense pressure on the pension system, with the Chinese Academy of Social Sciences predicting that the public pension fund could run out of money by 2035 without reform.
The policy change has sparked mixed reactions among the public. A 52-year-old Beijing resident, Lu, expressed optimism, stating, "I view this as a good thing because our society’s getting older, and in developed countries, the retirement age is higher." Conversely, Li Bin, a 35-year-old event planner, lamented, "It’s three years less of play time. I had originally planned to travel around after retirement."
Despite the short-term challenges, experts believe the long-term benefits are crucial. Raising the retirement age will help maintain stable productivity growth and ease the burden on the younger workforce, who currently face the daunting task of supporting an increasing number of retirees.
Comments