In a historic move aimed at addressing the challenges posed by an aging population, China has announced plans to gradually raise the statutory retirement age over the next 15 years. The decision, approved at the 11th session of the 14th National People’s Congress (NPC) Standing Committee, marks the first adjustment to the retirement system since its inception in the 1950s.
The current retirement age, one of the lowest among major global economies, is set at 60 for men and 50 to 55 for women, depending on their occupation. Beginning in 2025, the retirement age for men will progressively increase from 60 to 63, while for women, the age will rise from 50 or 55 to 55 or 58, based on their roles. This gradual adjustment is designed to adapt to the evolving demographic landscape and better utilize human resources.
Experts emphasize that the policy shift is essential in response to the significant demographic changes that have taken place in China over the past decades. In the 1950s, when the current retirement age was established, life expectancy was around 40 years. Today, it has risen to 78.6 years, and the number of years of education has also increased, delaying the average age at which people enter the workforce.
Moreover, the new policy offers flexibility, allowing individuals to plan their retirement based on personal circumstances. Workers will be able to retire up to three years earlier than the new statutory age if they meet the minimum pension contribution requirements, which will increase from 15 to 20 years starting in 2030. Conversely, employees may also delay retirement by up to three years, provided they reach an agreement with their employers.
Additionally, the policy is designed to minimize any negative social impact. It includes provisions to support unemployed older workers, offers early retirement options for those in special professions, and introduces measures to refine the old-age insurance system.
These reforms are a critical step in ensuring that China’s labor market remains competitive while addressing the needs of its aging population. By adjusting its retirement age, China is paving the way for a more sustainable balance between its workforce and pension system, ensuring better use of its human resources in the decades to come.
