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China raises retirement age for first time in 70 years due to demographic crisis

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(Source)

China announced plans on Friday to raise the retirement age for the first time since the 1950s, in a bid to tackle an aging population and a growing pension crisis. The new policy, which will take effect in 2025, will gradually raise the retirement age for men and women over the next 15 years.

  • Expected changes: The country’s current retirement age — 60 for men in all jobs, 50 for women in blue-collar jobs and 55 for women in white-collar jobs — will gradually rise starting next year. By 2039, men will will retire at 63, women in blue-collar jobs at 55, and women in white-collar jobs at 58. Many have expressed their frustration over the news, with one Weibo user to write“In the next 10 years, there will be another bill that will postpone retirement until we are 80.”

  • Boosting the news: China’s demographic challenges, including a shrinking working age population and a rapidly growing elderly population, have made the policy shift inevitable. As the country’s life expectancy rises to 78.2 years, raising the retirement age can ease the pressure on the pension system. By 2040, almost a third of the population will be over 60, putting pressure on the pension fund that projected run out by 2035. To complicate matters, China is facing a growing youth unemployment ratewhich may make retirement more difficult. “Young people can’t find jobs and older people are not allowed to retire,” said another Weibo user regretted.

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