China has unveiled plans to gradually raise its statutory retirement age in response to the challenges posed by an aging population and a looming demographic crisis. This policy shift comes as the country grapples with a declining birth rate and an increasing number of elderly citizens.
Currently, China’s retirement age is among the lowest globally and has remained unchanged for decades. The new plan will see the retirement age for male workers increase from 60 to 63 years. For female workers, the retirement age will be raised from 50 or 55 years (depending on the job type) to 55 and 58 years, respectively. These changes will be implemented gradually over 15 years, beginning in 2025.
Alongside raising the retirement age, the government will also increase the minimum number of years required for basic pension contributions to receive monthly benefits, from 15 to 20 years. This adjustment will start in 2030 and will occur at a pace of six months annually.
The new rules will also provide an option for workers to postpone retirement further if they reach an agreement with their employers. The decision to raise the retirement age was based on a comprehensive assessment of factors, including average life expectancy, health conditions, population structure, education levels, and workforce supply in China.
Experts believe that demographic changes are the primary reason behind this decision. With the population aging rapidly and the birth rate declining, policymakers are concerned about the potential impact on the economy, healthcare, and social welfare systems if these issues are not addressed.
This announcement follows a decade of public debate and discussion about the need to reform the retirement age, with many citizens likely mentally prepared for the change. State media had recently emphasized the necessity of this reform, highlighting that it aligns with the increased life expectancy and educational attainment across the country.