In a major turn of events, China is set to gradually raise its retirement age starting January 1, 2025.
As per Reuters, the top legislative body on Friday, September 13, approved a plan to increase the retirement age for the first time since the 1950s.
This comes as the country deals with an aging population and a shrinking pension fund, while the average life expectancy has increased to 78.2 years.
By 2040, about a third of China’s population is expected to be over 60.
As per the approved plan, women in blue-collar jobs will see their retirement age go from 50 to 55, while those in white-collar jobs will increase from 55 to 58. Men’s retirement age will rise from 60 to 63.
This change will be implemented gradually over the next 15 years.
Moreover, workers will not be allowed to retire before the new age but can choose to extend their retirement by up to three years.
Beginning in 2030, employees will have to contribute more to the social security system to receive pensions, with a requirement of 20 years of contributions by 2039.
The new policy was based on a thorough evaluation of life expectancy, health, population structure, education, and workforce supply.
Additionally, the announcement has received mixed reactions online, with some people worried that retirement ages might increase even further in the future, while others anticipated the change, noting that retirement ages in Europe are already higher.
