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China to raise retirement age as demographic crisis looms / Photo: © AFP/File
NYSE - LSE
China to raise retirement age as demographic crisis looms
China said Friday it would gradually raise its statutory retirement age, as the country grapples with a looming demographic crisis and an older population.
Hundreds of millions of people in China are set to enter old age in the coming decades while the birth rate dwindles dramatically.
The national population fell in 2023 for the second year in a row, with policymakers warning of potentially severe impacts on the economy, healthcare and social welfare systems if action is not taken.
"The statutory retirement age for male workers will be gradually extended from the original 60 years to 63 years," a decision by Beijing officials shared by Xinhua said.
For women workers the retirement age will be extended "from the original 50 or 55 years to 55 and 58 years, respectively", depending on the type of job.
The retirement age will begin to be gradually raised over 15 years from 2025, state media said.
"Starting 2030, the minimum year of basic pension contributions required to receive monthly benefits will be gradually raised from 15 years to 20 years at the pace of an increase of six months annually," Xinhua said.
The new rules will also allow Chinese people "to postpone retirement to an even later date if they reach an agreement with employers", it added.
China's retirement age had not been raised for decades.
- 'An inevitable choice' -
Prior to Friday's announcement, state media had published articles touting the proposed retirement age.
"This reform will adapt to the objective situation of our country's widespread increase in life expectancy and years of education," an article in the People's Daily newspaper said this week.
It will also "raise the efficiency of the development and utilisation of human resources," the article in the Communist Party-run outlet said.
Mo Rong, director of the Chinese Academy of Labour and Social Security, told the People's Daily that raising the retirement age "is an inevitable choice for our country to adapt to the new normal of population development".
He added that the change "is conducive to stabilising the labour participation rate (and) maintaining the momentum and vitality of economic and social development".
L. Andersson--BTZ
