China’s legislature has approved a long-anticipated policy to raise the retirement age, currently one of the youngest among major global economies, in response to the country’s shrinking population and an ageing workforce. Starting in January 2024, the retirement age for men will gradually increase to 63, while for women, it will rise to 55 or 58 depending on their occupation.
The current retirement age in China is 60 for men, 50 for women in blue-collar jobs, and 55 for women in white-collar positions. The newly approved changes will be implemented over the next 15 years, adjusting the retirement age incrementally based on birthdates. For example, under the new system, a man born in January 1971 would retire at 61 years and 7 months in August 2032, while a man born in May 1971 would retire at 61 years and 8 months in January 2033.
The move comes amid increasing strain on China’s pension fund, as more workers reach retirement age, further exacerbated by the country’s declining birth rate and longer life expectancy. Xiujian Peng, a senior research fellow at Victoria University in Australia, emphasized the urgency of the reform: “With more people retiring and fewer entering the workforce, the pension system is under high pressure. Now is the time for decisive action.”
Experts believe the extension is crucial to easing the financial burden on China’s pension system and sustaining its economic growth. China’s ageing population has been a growing concern for policymakers, particularly as the country aims to maintain productivity and reduce the strain on social security systems.
The retirement age reform has sparked public debate, as many workers are accustomed to early retirement, but the government argues that these changes are necessary to adapt to new demographic realities.
(With media reports)