China to Increase Retirement Age for the First Time in Decades

China is making a big change to its retirement age for the first time since the 1950s. On Friday, the country’s top lawmakers approved a plan to gradually increase the retirement age due to an aging population and a shrinking pension fund.

New Retirement Ages Starting 2025

For Women

Blue-collar workers will retire at 55, up from the current 50.

White-collar workers will retire at 58, up from 55.

For Men

The retirement age will rise from 60 to 63.

The changes will start on January 1, 2025. The retirement age will increase every few months over the next 15 years.

Rules on Retirement

Retiring before the new retirement age will not be allowed. However, individuals can delay retirement by up to three years if they choose.

From 2030, workers will need to contribute more to the social security system to receive their pensions. By 2039, they must have worked and contributed for at least 20 years to qualify for pensions.

Experts from the Chinese Academy of Social Sciences have warned that China’s pension fund might run out by 2035. This estimate was made before the COVID-19 pandemic, which further stressed China’s economy.

The new plan aims to address the challenges of an aging population, increasing life expectancy, and a shrinking workforce. However, it has sparked mixed reactions online. Some people worry about the impact on their finances and job opportunities, while others expected these changes.

China’s population has been decreasing for the past two years, and the average life expectancy has risen to 78.2 years. By 2040, about 402 million people in China will be over 60 years old. This growing elderly population, combined with a decreasing birth rate and economic pressures, is creating significant challenges for the country.

In summary, China’s plan to gradually raise the retirement age is a response to these demographic and economic issues.