Breaking Point: China Hikes Retirement Age for First Time in 46 Years Amid Looming Worker Crisis
China to Raise Retirement Age for the First Time Since 1978
China is set to increase its retirement age in an effort to mitigate the decline of its workforce, according to reports from Chinese state media, as cited by Bloomberg.
The new retirement ages will be as follows: 63 years for men, up from 60; 55 years for ordinary female workers, up from 50; and 58 years for women in management positions, up from 55.
The retirement age increase will be implemented starting January 1, 2025, but will be rolled out gradually over a period of 15 years.
In addition to the retirement age increase, the amount of compulsory contributions to pension payments will also be increased, requiring working Chinese citizens to contribute for 20 years, rather than the current 15 years. This change will take effect in 2030.
By increasing the retirement age, China aims to broaden its tax base and delay access to pension benefits, thereby reducing the burden on public finances.
Notably, China’s current retirement age is one of the lowest globally, despite the country’s rising life expectancy, which increased from 71 years in 2000 to 78 years in 2021.
China is grappling with significant demographic challenges, including a rapidly aging population and a declining birth rate.
Projections indicate that individuals aged 65 and above will comprise 30% of China’s population by 2035, up from 14.2% in 2021, according to a report by state broadcaster CCTV.