bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Phoebe Zhang

China has decided to raise the retirement age by up to five years as the country battles an economic slump and the growing pressure from an ageing population.
The retirement age for men will rise from 60 to 63 and for female office workers from 55 to 58 as a result of the decision by the Standing Committee of the National People’s Congress, the country’s top legislative body.
The biggest increase affects female blue-collar workers, who could previously retire aged 50 but will now have to wait until they reach the age of 55.
The old retirement ages were well below those in most developed economies. In Japan, people can begin receiving pensions at 65, while in South Korea, the pension age is 63.
All foreign-funded companies, as well as companies based in Hong Kong and Taiwan, will be affected by the plan as long as they have employees on the mainland.


The changes will take effect from January 1, 2025, Xinhua reported.
The plan also stated that from 2030, workers may only receive their pensions after paying into the system for 20 years, an increase of five years. If they reach the legal retirement age but have not contributed enough to the pension fund, they may continue to pay into the scheme beyond retirement or choose to make a one-time contribution.
Additionally, the plan called for more employment and entrepreneurship opportunities for the young, ensuring the rights of freelancers and the unemployed, as well as improving the system for senior care and childcare.
The changes were necessary, said Wang Xiaoping, minister of human resources and social security, because the original retirement plan was devised in the 1950s, and China’s economic, social and demographic structure has changed over the years.
“The new plan can help us better use human resources, effectively increase our labour force, and satisfy people’s diverse needs for more work or private lives,” she said.
The new changes were in line with observers’ expectations, said Huang Wenzheng, director of the Beijing-based YuWa Population Research Institute, a private think tank focused on demographic and public policy analysis.
“This is mainly because China’s pension pool is drying up. As birth rates fall and life expectancy increases, the proportion of elderly is also increasing, which means the working population, or those paying into the pension pool, is becoming less and less,” he said.
The Chinese Academy of Social Sciences has warned that based on current trends, the pension system will run out of money by 2035.
Huang said the policy might have an effect on young people’s employment, as well as their willingness to have children. Currently, many choose to have their retired parents raise their children, and delayed retirement might stand in the way.
“I think the policy only wanted to make up the pension account, it did not consider the wide effects it might have on the economy and society,” he said.
Huang said policies should strive to increase the birth rate, instead of only thinking about how to fill the pension fund.
Yue Su, who leads the Economist Intelligence Unit’s China research team, said the government’s policy move addresses the current economic and fiscal challenges.
“Our calculations suggest that if the retirement age is raised to 65 by 2035, the pension budget shortfall could be reduced by 20 per cent, and received net pension can be increased by 30 per cent, suggesting relief of both government and household burden,” she said.


China has been considering raising the retirement age for years, in the hopes it could help the economy by countering the impact of a shrinking workforce.
At the Communist Party’s third plenum in July, senior officials proposed that the retirement age be gradually lifted and the “silver economy” developed to create more jobs for older people. State media touted the idea of raising the retirement age, calling it an “inevitable choice”.
But the public debate this has generated on social media has seen many expressing their opposition. One popular argument alluded to the high youth unemployment rate by saying all generations now have cause to worry: the young cannot find jobs while the old cannot retire.


Chinese county grapples with how to lure and reward workers for difficult, low-level jobs

China expands health insurance coverage with 91 new drugs, breakthrough treatments

China’s population crisis: is it irreversible?

China’s multidecade dairy boom sours as population ages, sales slump

China's ageing population

China raises retirement age by up to 5 years amid growing pressure from ageing population

The move is designed to counter the economic impact of a shrinking workforce. Photo: Reuters

Lawmakers discuss plan to gradually lift retirement age in China

China’s leadership wants to raise the retirement age, which is among the lowest in the world. Photo: AFP

China vows to make key social security fund ‘bigger, stronger’ amid ageing population

As of 2023, China had nearly 297 million people aged 60 or above, accounting for 21.1 per cent of the national population. Photo: Shutterstock

Senior citizens enjoy coffee at a rehabilitation centre in northern China’s Tianjin. Photo: Xinhua

News

China

Politics

The top legislative body agreed the measures following warnings the pension system could run out of money by 2035


The top legislative body agreed the measures following warnings the pension system could run out of money by 2035.


China's population