For the first time since the 1950s, China is set to gradually raise its retirement age starting in 2025, in response to the country’s rapidly aging population and a diminishing pension fund. The plan, approved by the top legislative body, aims to raise the retirement age for women in blue-collar jobs from 50 to 55 and for women in white-collar roles from 55 to 58. Men will also see an increase from 60 to 63. This incremental adjustment will occur over the next 15 years, with retirement before the statutory age prohibited according to the state news agency Xinhua. This adjustment reflects China’s effort to sustain a shrinking workforce, balancing longer life expectancy and economic challenges.
Demographic Pressures and Pension Sustainability Concerns
The reform comes in the wake of growing concerns about the sustainability of China’s pension system. In 2019, the Chinese Academy of Social Sciences predicted that the main state pension fund could run out by 2035. The COVID-19 pandemic further stressed the economy, exacerbating these fears. By 2039, employees will be required to make 20 years of contributions to the social security system in order to access their pensions. As China’s birth rate continues to fall and life expectancy rises, reaching 78.2 years in 2023, the working-age population is shrinking, leaving fewer contributors to the pension fund. Over 400 million people, or nearly one-third of the population, will be over 60 by 2040, compared to 254 million in 2019.
Public Reactions: Skepticism and Acceptance
The retirement age reform has sparked mixed reactions on Chinese social media platforms like Weibo. Many expressed frustration over the increased retirement age, especially as middle-aged workers face pay cuts and job insecurities. Others, however, anticipated this move, comparing China’s new retirement ages to those in European countries where men retire at 65 or 67. Despite the mixed public sentiment, it is clear that China faces a looming demographic crisis. With the workforce aging and the government’s ability to support its elderly population waning, reforms like this are necessary to adapt to China’s changing socio-economic landscape.