Raise of retirement age for women surpassing 50 in China: Chinese legislature makes decision
For the first time since the 1950s, China has increased the retirement age. The parliament made this decision on Friday, stating that men will now retire at 63 instead of 60, as reported by state television. Women's retirement age varies depending on their profession, with factory workers able to retire at 50 and office workers at 55.
The new retirement age adjustments will be implemented over a 15-year period, starting in January. For instance, a man born in January 1971 could retire in August 2032 at the age of 61 years and 7 months, as per a table released along with the decision. Meanwhile, a man born in May 1971 would retire in January 2033 at 61 years and 8 months old.
China is facing a decrease in population and an increase in the average age of workers, leading to this change. "We have a growing number of individuals reaching retirement age, which puts pressure on the pension fund. So, taking serious action is necessary at this point," said Xiujian Peng, a researcher at Victoria University in Australia focusing on China's population growth and its economic impact. The previous retirement age was set in the 1950s when life expectancy was roughly 40 years.
By the end of 2023, approximately 300 million people in China were over 60 years old. This number is projected to reach 400 million by 2035, surpassing the US population. The Chinese Academy of Social Sciences predicted that the state pension fund would deplete by this time. "This is a challenge worldwide," said Yanzhong Huang from the Council on Foreign Relations. "But in China, with its large elderly population, the challenge is particularly significant."
Given the situation, fewer births have occurred due to the high costs discouraging younger people from having children. In 2022, the National Bureau of Statistics reported that the nation had officially entered a population decline phase. The population shrank further in 2023, losing 2 million people.
Not a single worker affected by the retirement age increase in 2033 will have retired at the original 60-year-old age, as the new retirement age for men begins at 63. Despite the increased retirement age, the Chinese pension fund is still projected to deplete by 2035, highlighting the significant challenge posed by the country's aging population.
