China Approves Gradual Increase of Statutory Retirement Age Amid Aging Population Concerns

China Approves Plan to Raise Statutory Retirement Age

The Chinese government has taken a significant step by approving a plan to gradually increase the country’s statutory retirement age, which is currently one of the lowest in the world. This long-anticipated decision comes in response to the pressing issue of a rapidly aging population, although it has met with widespread public disapproval.

This marks the first adjustment to China’s retirement age since the 1950s. The changes will be implemented in phases, beginning on January 1, 2025. Under the new plan, the retirement age for men, which has historically been set at 60, will gradually increase in increments of several months, ultimately reaching 63 by the year 2040. For women, the retirement age will also see changes: those in white-collar jobs, who have been able to retire at 55, will now retire at 58, while women in blue-collar positions, previously able to retire at 50, will have to work until they are 55.

Policymakers and experts have long advocated for a revision of the retirement age, citing that the existing regulations were established during a period when life expectancy was significantly lower and birth rates were higher. They have expressed concerns that maintaining the current retirement age would place an unsustainable burden on the country’s labor force and pension systems. With a rising number of older individuals retiring and a diminishing number of younger people entering the workforce, the situation has become increasingly dire.

According to official statistics, China’s working-age population has been in decline since 2012, with an annual average reduction of over 3 million people. As of last year, there were approximately 297 million individuals aged over 60, representing nearly 21 percent of the nation’s total population.

Despite the government’s rationale, the proposal has faced significant resistance from both older and younger workers. Many older individuals fear that extending their working years will lead to increased competition for jobs, while younger workers worry that a larger labor pool will make it even more challenging to secure employment. Additionally, China’s social safety net is relatively weak, and age discrimination is prevalent among employers. This leaves many blue-collar workers anxious about the prospect of being unable to find jobs while also being ineligible for pension benefits.

Given the sensitivity surrounding this issue, the government has previously promised to consider raising the retirement age, only to retract those commitments in the face of public backlash. As the situation unfolds, it remains to be seen how the proposed changes will impact the lives of millions of Chinese citizens.