Beijing has announced plans to gradually increase China’s retirement age over the next 15 years, in response to the country’s rapidly aging population. This decision marks the first major adjustment in 70 years and was approved by China’s National People’s Congress (NPC) during its Standing Committee meeting on Friday.
According to a proposal released by Xinhua, the retirement age for male workers will rise from 60 to 63. Female white-collar workers will see their retirement age increase from 55 to 58, while female blue-collar workers will retire at 55 instead of 50. These changes will be implemented gradually starting from January 1, 2025.
The decision to raise the retirement age comes as Beijing grapples with a demographic crisis that could potentially hinder the goals of the ruling Chinese Communist Party. China’s fertility rates hit a record low in 2023, just two years after families were allowed to have three children due to an aging population and shrinking workforce.
Wang Xiaoping, head of China’s Human Resources and Social Security Ministry, stated that adjusting the retirement age could help counteract the declining trend in working-age population and maintain economic and social development momentum. Wang also highlighted how life expectancy has increased significantly over time, making it necessary for optimal utilization of human resources.
By 2023, approximately one-fifth of China’s current population—around 297 million people—will be aged over sixty. The World Health Organization estimates that this percentage is expected to rise even further—to twenty-eight percent by 2040—with around four hundred and two million people in China being older than sixty.
Economic researcher David Huang believes that postponing retirement could alleviate strain on China’s pension system. Projections by state-backed think tank Chinese Academy of Social Sciences indicate that without intervention, there is a risk of depleting pension funds within a decade. The worker-to-retiree ratio is diminishing which may result in a deficit of $16.7 billion by 2028—a figure projected to soar up to $1.6 trillion by mid-century.
While some individuals express concerns about potential job scarcity for young people due to senior employees staying longer at their positions, others worry about further increases in retirement age if Beijing continues struggling with pension pressure.
The announcement has sparked widespread discussion on social media platform Weibo with hashtags related to this topic trending within hours after its release.
