China raises retirement age for first time since 1950s

For the first time since the 1950s, China will "gradually raise" its retirement age as it grapples with an aging population and a shrinking pension budget. On Friday, the country's top legislative body approved a plan to increase the statutory retirement age from 50 to 55 for women in blue-collar jobs and from 55 to 58 for women in white-collar positions. Men will see their retirement age rise from 60 to 63. China currently has one of the lowest retirement ages globally, but starting January 1, 2025, the new rules will begin to take effect, incrementally raising retirement ages every few months over the next 15 years. By 2039, all workers will be required to contribute 20 years into the social security system to receive their pensions. Starting in 2030, employees will also need to make more contributions to access these benefits.

The changes come amid concerns that China's state pension fund could run out of money by 2035, a warning issued by the Chinese Academy of Social Sciences in 2019, even before the pandemic further strained the economy. The decision to raise the retirement age was made after a comprehensive assessment of China's life expectancy, health conditions, population structure, and workforce supply, according to state media. While many see the change as inevitable, given global trends, the announcement has sparked discontent among some citizens. Critics took to social media, with some expressing fears that retirement might be delayed further in the future, while others lamented the difficulties middle-aged workers face, such as pay cuts and job insecurity.

China's population has been shrinking for the second consecutive year in 2023, while its average life expectancy has risen to 78.2 years. The country is also facing a looming demographic crisis, exacerbated by a declining birth rate, a slowing economy, and a decades-long one-child policy. Over the next decade, around 300 million people currently aged 50 to 60 will leave the workforce, raising concerns about who will care for the elderly. ⚡ Image Credit: GettyImages