China Plans Gradual Retirement Age Increase Amid Aging Population and Pension Concerns

In response to its rapidly aging population and a stressed pension system, China has announced plans to gradually raise its statutory retirement age over the next five years. This decision comes as part of a series of resolutions adopted during the recent Third Plenum, a significant top-level meeting of the Communist Party.

China’s life expectancy has increased significantly, now surpassing that of the United States at 78 years, up from just 36 years in 1949. However, the country maintains one of the world’s lowest retirement ages, with men retiring at 60, women in white-collar jobs at 55, and working-class women at 50.

The party’s central committee emphasized a flexible and voluntary approach to this reform, stating, “In line with the principle of voluntary participation with appropriate flexibility, we will advance reform to gradually raise the statutory retirement age in a prudent and orderly manner.” Although specific details about the exact increase and timeline were not disclosed, a China Pension Development Report from 2023 suggested that the retirement age could eventually reach 65.

This reform has been under consideration for several years due to the diminishing state pension budget. The Chinese Academy of Social Sciences warned in 2019 that the country’s main state pension fund could be depleted by 2035. This prediction was made before the COVID-19 pandemic, which further impacted China’s economy.

Concurrently, China is experiencing a decline in its population for the second consecutive year in 2023, with birth rates continuing to fall. The Global Times, a state-run newspaper, reported that Chinese demographers see the retirement age plan’s focus on “voluntariness” and “flexibility” as an acknowledgment that a one-size-fits-all approach is unsuitable for retirement policies.

Despite the government’s intentions, the plan has sparked skepticism and debate on Chinese social media. One Weibo user expressed concerns, stating, “Those who wish to retire early are burnt out from their laborious jobs, but those who are in comfortable, lucrative roles will not choose to retire. What kind of jobs will the younger generation end up with?”