China is set to "gradually raise" its retirement age for the first time since the 1950s, in response to an ageing population and a shrinking pension budget. On Friday, the country's top legislative body approved a plan to increase the statutory retirement age. For women in blue-collar jobs, the age will rise from 50 to 55, while women in white-collar positions will see an increase from 55 to 58. For men, the retirement age will be raised from 60 to 63.
Currently, China's retirement ages are among the lowest in the world. According to the new plan, the changes will take effect starting January 1, 2025. Retirement ages will be gradually raised every few months over the next 15 years, as reported by Chinese state media. Early retirement before the statutory age will no longer be permitted, although workers can delay their retirement by up to three years if they choose.
Additionally, from 2030, employees will be required to contribute more to the social security system to qualify for pensions. By 2039, individuals will need to have contributed for 20 years to access their pension benefits.
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The Chinese Academy of Social Sciences warned in 2019 that the main state pension fund could run out of money by 2035. This prediction was made before the Covid-19 pandemic, which has since worsened China's economic challenges. The plan to adjust the retirement and pension system was based on factors such as average life expectancy, health conditions, population structure, education levels, and workforce supply, according to state news agency Xinhua.
China's population has been declining for two consecutive years, while life expectancy has risen to 78.2 years. The announcement has sparked mixed reactions online, with some expressing concern over the increasing burden on middle-aged workers. Others, however, noted that such changes were expected, citing similar retirement trends in European countries where men retire at 65 or 67 and women at 60.
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