International Desk :
Retiring before the statutory age will not be allowed, as China faces an ageing and shrinking population
China will “gradually raise” its retirement age for the first time since the 1950s, as the country confronts an ageing population and a dwindling pension budget. The top legislative body on Friday approved proposals to raise the statutory retirement age from 50 to 55 for women in blue-collar jobs, and from 55 to 58 for females in white-collar jobs.
China’s current retirement ages are among the lowest in the world. According to the plan passed on Friday, the change will set in from 1 January 2025, with the respective retirement ages raised every few months over the next 15 years, said Chinese state media.
Retiring before the statutory age will not be allowed, state news agency Xinhua reported, although people can delay their retirement by no more than three years.
Starting 2030, employees will also have to make more contributions to the social security system in order to receive pensions. By 2039, they would have to clock 20 years of contributions to access their pensions.
The state-run Chinese Academy of Social Sciences said in 2019 that the country’s main state pension fund will run out of money by 2035 – and that was an estimate before the Covid-19 pandemic, which hit China’s economy hard.
The plan to raise retirement ages and adjust the pension policy was based on “a comprehensive assessment of the average life expectancy, health conditions, the population structure, the level of education and workforce supply in China,” Xinhua reported. But the announcement has drawn some scepticism and discontent on the Chinese internet.
“In the next 10 years, there will be another bill that will delay retirement until we are 80,” one user wrote on a Chinese social media site Weibo.