"China’s top legislature has reviewed a plan to gradually raise the retirement age, months after the ruling Communist Party’s Central Committee proposed it be lifted in a “voluntary and flexible” way." https://t.co/KI7jWyCBFy via @scmpnews
— The National Bureau of Asian Research (@NBRnews) September 11, 2024
China is considering plans to gradually raise the retirement age to address the challenges posed by a rapidly aging population and a shrinking workforce. The current retirement age in China, which has been in place since 1951, is 60 for men, 55 for women in white-collar jobs, and 50 for women in blue-collar jobs, making it one of the lowest in the world. On Tuesday, Human Resources and Social Security Minister Wang Xiaoping presented a draft decision on implementing a gradual increase in the mandatory retirement age at a meeting of the Standing Committee of the National People’s Congress, China’s top legislative body.
Faced with population aging, China is bolstering its commitment to providing better services for its senior citizens. These services will ensure their living needs and enable them to better enjoy their golden years. pic.twitter.com/0VcxuEN1Bb
— Zhang Meifang (@CGMeifangZhang) September 11, 2024
The need for reform is urgent as life expectancy in China has increased dramatically, reaching 78 years by 2021 from about 44 years in 1960, and it is projected to exceed 80 years by 2050. Mo Rong, Director of the Chinese Academy of Labour and Social Sciences, stated in an interview with the People’s Daily, “It is an inevitable choice for China to adapt to the new normal of population development.”
Squeezed by an economic downturn and a rapidly aging population, China took a step toward raising its unusually low benchmarks for when people should retire.@QiLiyan https://t.co/yGCkeGULv0https://t.co/yGCkeGULv0
— Jonathan Cheng (@JChengWSJ) September 10, 2024
China’s population has fallen for two consecutive years and is expected to continue declining for decades, putting pressure on the rapidly aging populace.
China’s aging population concerns
National health authorities predict that the number of people aged 60 and older will rise from 280 million to more than 400 million by 2035, a figure equal to the combined current populations of Britain and the United States. The ratio of workers to retirees has also been declining, with each Chinese retiree currently supported by the contributions of five workers, half the ratio from a decade ago. This trend is expected to worsen to a 4-to-1 ratio by 2030 and 2-to-1 by 2050.
Additionally, eleven of China’s 31 provincial-level jurisdictions are running pension budget deficits, according to finance ministry data, and the state-run Chinese Academy of Sciences predicts that the pension system could run out of money by 2035. The discussion on raising the retirement age reflects ongoing attempts by the Chinese government to find flexible and sustainable solutions to the demographic shifts affecting the country, aiming to reduce pressure on pension budgets and maintain economic and social stability.
