China’s top legislative body is considering a plan to gradually raise the country’s retirement age, a move aimed at addressing the economic strain caused by an aging population and shrinking workforce, Reuters reports.
Currently, China has one of the world’s lowest retirement ages, with men retiring at 60, women in white-collar jobs at 55, and women in blue-collar work at 50. The proposed reforms would align China’s retirement policies more closely with those of developed countries, where retirement ages are generally higher.
The plan, which was discussed by the National People’s Congress in Beijing this week, follows an announcement by the ruling Communist Party in July that retirement ages would be gradually increased. The government sees the policy change as necessary to relieve pressure on the country’s pension system, which is facing growing deficits. Many Chinese provinces are already struggling with pension shortfalls, and the system is expected to run out of funds by 2035, according to estimates by the Chinese Academy of Sciences.
The issue has sparked significant public debate, particularly on social media, with many expressing concerns about job availability and the prospect of older workers staying in the labor force longer. Some fear the changes will exacerbate youth unemployment, a pressing issue in China’s competitive job market.
“Young people cannot find jobs, middle-aged people are worried about being laid off, and now the elderly can’t retire,” wrote one Weibo user in response to the discussion.
Supporters of the reform argue that extending working years is necessary given China’s increasing life expectancy, which rose from 44 years in 1960 to 78 years in 2021 and is projected to surpass 80 years by 2050. By 2035, China’s population of people aged 60 and older is expected to reach 400 million, adding further strain to the pension system. Today, each retiree is supported by contributions from five workers, down from a ratio of 10-to-1 a decade ago, with projections showing a continued decline to 2-to-1 by 2050.
Mo Rong, Director of the Chinese Academy of Labour and Social Sciences, said that raising the retirement age is “an inevitable choice for China to adapt to the new normal of population development.” However, there are concerns about how the changes will be implemented fairly across the country, especially considering differences between rural and urban workers, and the challenges faced by migrant and gig workers who may have inconsistent pension contributions.
China’s proposed reforms reflect a trend seen in other aging societies, such as Japan and South Korea, where pension ages have been raised to 65 and 63, respectively. However, analysts caution that the transition may be more complicated in China due to regional disparities and labor market differences. Stuart Gietel-Basten, a professor of Social Science and Public Policy at Hong Kong’s University of Science and Technology, noted that while the types of jobs held by older workers may differ from those sought by younger job seekers, the broader impact on employment and economic stability will need to be carefully managed.
