China has authorised age retirement increase for the first time since 1978 to help slow the decline in its workforce and support the economy.
According to the official Xinhua news agency, China’s top lawmakers have approved a plan to gradually delay retirement.
Over the next 15 years, the retirement age for men will increase from 60 to 63, and for women, it will rise to 58. This change will take effect from January 1, 2025.
The plan was approved following a July announcement by the Communist Party, which said the retirement age would be raised in a “voluntary, flexible manner.”
This move aims to address demographic challenges affecting the economy. However, it may also cause public discontent, particularly in the context of the current economic slowdown.
Earlier this week, the legislature’s discussion of the plan led to widespread criticism on social media, where users expressed frustration with the slow job market. Many also highlighted the issue of employers discriminating against older workers, a problem the government recently promised to tackle.
Despite significant improvements in life expectancy, China’s retirement age remains one of the lowest in the world.
Since the 1970s, men have retired at 60, while white-collar women have retired between the ages of 50 and 55. Previous efforts to raise the retirement age, such as in 2008, were unsuccessful.
By increasing the retirement age, the government hopes to expand its tax base and delay pension payments. This will help ease the financial burden as the population rapidly ages and the birth rate declines to record lows.
According to state broadcaster CCTV, the proportion of people aged 65 and older is expected to rise from 14.2% in 2021 to 30% by around 2035.