China is set to gradually raise its statutory retirement age over the next five years in an effort to address its ageing population and strained pension system. Despite the country’s life expectancy surpassing that of the United States, with citizens now living to an average of 78 years, the retirement age in China remains one of the lowest globally.
Currently, the retirement age in China is 60 for men, 55 for women in white-collar jobs, and 50 for working-class women. However, as part of a series of resolutions adopted at the recent Third Plenum Communist party meeting, the central committee has announced plans to increase the retirement age in a “prudent and orderly manner.”
While the exact details of the retirement age adjustments have not been specified, a China Pension Development Report suggests that 65 years old may be the final result after the changes. This move comes as China’s pension budget faces challenges, with projections indicating that the main state pension fund could run out of money by 2035.
The plan to raise the retirement age has sparked mixed reactions in China, with some expressing concerns about the impact on different sectors of the workforce. Critics argue that those in labor-intensive jobs may be forced to work longer, while others worry about delayed access to their pensions if they are unable to find employment until the new retirement age.
Despite the skepticism, the Chinese government emphasizes the principles of “voluntariness” and “flexibility” in the retirement age adjustments, acknowledging the need for a tailored approach to retirement policies. As China grapples with an ageing population and economic challenges, the decision to raise the retirement age reflects the government’s efforts to ensure the sustainability of the pension system in the years to come.
