China is raising its statutory retirement ages for the first time since establishing them seven decades ago as an ever-rising proportion of seniors pressures the country’s pension systems.
Newsweek reached out to the Chinese Embassy in the U.S. by email for comment.
Why It Matters
The move comes at a demographic inflection point for China, which is grappling with a plummeting birth rate—one of the world’s lowest—despite ending its one-child policy in 2016 and implementing various measures to encourage childbirth. Policymakers must contend with the rising cost of urban living, stagnant wages and shifting attitudes toward families among younger Chinese.
At the same time, China’s aging population is growing rapidly. Seniors 65 and older are projected to exceed 20 percent of the population within a decade, placing China among “super-aged” societies like Japan and South Korea.
A vendor takes a nap on a reclining chair inside his market stall, surrounded by bags and other merchandise, on September 4 in Chongqing, China. China has raised its statutory retirement ages for the first…
A vendor takes a nap on a reclining chair inside his market stall, surrounded by bags and other merchandise, on September 4 in Chongqing, China. China has raised its statutory retirement ages for the first time since establishing them in the 1950s.
Cheng Xin/Getty Images
What To Know
The policy change, approved by China’s top legislative body in September, will see men’s retirement age increase from 60 to 63. For women, the retirement age will rise from 55 to 58 for white-collar workers and from 50 to 55 for blue-collar workers.
Additionally, starting in 2030, the minimum years of basic pension contributions required for monthly benefits will gradually increase from 15 to 20, with six months added each year.
The new policy allows flexibility. Workers who meet the minimum pension contribution years can retire up to three years early, while others may choose to delay retirement by up to three years if they reach an agreement with their employers.
When retirement ages were established in the 1950s, the life expectancy in China was in the 40s. Decades of improved living standards have raised it to 78 years, according to the U.N. Population Division.
Supporters praise the voluntary aspects of the policy, highlighting its flexibility and its potential to alleviate pressure on China’s modest pension system, which is facing unprecedented demand as more people enter retirement.
However, younger Chinese have expressed frustration online, lamenting what they view as an increasingly challenging future. Many question how they will manage financially if they are unable to retire earlier.
Despite the changes, China’s retirement age remains lower than those in many other major economies. In the United Kingdom, the retirement age is 66, and in the United States and Germany, it is 66 or 67, depending on the retiree’s birth year.
What People Are Saying
Yuan Xin, Nankai University professor and vice president of the China Population Association, told Chinese state media outlet the Global Times: “The retirement policy has been in place for a long time. After about 70 years, the population, economy, and social situations in China have undergone earth-shaking changes.
“Therefore, the previous statutory retirement age is inconsistent with the current national conditions and future economic and social development.”
U.S.-based law firm Baker McKenzie: “Employers will need to be mindful of when employees will reach their statutory retirement age under the new policy and when they can be eligible for pension benefits.
“Companies should also be aware that different cities may continue to have their own local policies or court practices on how to deal with various retirement-related issues within the above national framework, as national law is still silent or unclear on certain key questions.”
What’s Next?
The statutory retirement ages will be phased in gradually over 15 years.
The number of Chinese aged 60 or above is expected to rise from 297 million to 400 million by 2035, according to official data.
During a national conference on civil affairs on Monday, officials met to discuss progress made last year in aging-related areas, such as nursing homes and home-based care, and to discuss further initiatives planned for this year, Xinhua reported.
China Raises Retirement Age Amid Population Crisis
