Written By Lisa Murimi
China will gradually raise its statutory retirement age over the next five years to manage its ageing population and alleviate pressure on its pension system.
Life expectancy in China has risen to 78 years, surpassing that of the United States, from just 36 years at the time of the Communist revolution in 1949.
Despite this, China’s retirement age remains one of the lowest globally: 60 for men, 55 for women in white-collar jobs, and 50 for working-class women.
The plan to raise retirement ages was part of a series of resolutions adopted last week at a top-level Communist party meeting, known as the Third Plenum.
“In line with the principle of voluntary participation with appropriate flexibility, we will advance reform to gradually raise the statutory retirement age in a prudent and orderly manner,” the party’s central committee stated in a policy document.
While the specifics of the age increase and timeline were not disclosed, a China Pension Development Report released at the end of 2023 suggested that “65 years old may be the final result after adjustment.”
This plan addresses concerns about China’s dwindling pension budget, with the Chinese Academy of Social Sciences predicting in 2019 that the main state pension fund could run out of money by 2035.
Additionally, China’s population has declined for a second consecutive year in 2023 due to a falling birth rate. Demographers quoted by the state-run Global Times emphasized the plan’s focus on “voluntariness” and “flexibility,” acknowledging the diverse needs of the workforce.
However, the proposal has faced skepticism online. “Those who wish to retire early are burnt out from their laborious jobs, but those in comfortable, lucrative roles will not choose to retire. What kind of jobs will the younger generation end up with?” a user on Weibo questioned.
Others expressed concern that delayed retirement could mean delayed access to pensions, with one user noting, “There is no guarantee that you would still have a job before the statutory retirement age.”
