China has announced plans to raise the retirement age for the first time since the 1950s. This move is part of the government’s strategy to address the pressing issues of an ageing population and a shrinking workforce.
Starting from January 1, 2025, the retirement age will be gradually increased over the next 15 years. For men, the retirement age will rise from 60 to 63. For women, it will increase from 50 to 55 for blue-collar jobs and from 55 to 58 for white-collar jobs. This phased approach aims to ease the transition for workers and employers alike.
The policy is designed to alleviate the financial strain on China’s pension system, which is currently facing significant deficits. Without reform, the pension fund is projected to run out of money by 2035. By extending the working years, the government hopes to bolster the pension system’s sustainability.
China’s demographic crisis has been a growing concern, with the birth rate declining and life expectancy rising to 78.2 years. The ageing population poses a challenge to economic growth and social stability. The new retirement policy is seen as a crucial step in mitigating these issues.
Public reaction to the policy has been mixed. While some support the move as necessary for economic stability, others worry about the impact on middle-aged workers and the job market. The government has pledged to implement supportive measures to help workers adapt to the changes.
