For years, China has maintained relatively early retirement ages for its workforce, with men typically retiring at 60 and women as young as 50. However, this long-standing system is set for a significant overhaul. On Friday, the Chinese government announced new legislation to gradually raise the retirement age over the next 15 years, starting from January 1, according to state news agency Xinhua.
Under the existing regulations, men in urban areas could retire at 60 and claim their pensions, while women were eligible to retire at 50 or 55, depending on their occupation. The newly approved rules will push the retirement age incrementally, eventually requiring men to retire at 63 and women at 55 or 58, depending on their work roles.
The reform is part of a broader legislative package passed by China’s top lawmaking body, following earlier hints from the Communist Party’s key leadership in July. One major change involves increasing the minimum years of service required to qualify for a monthly pension, extending it from 15 to 20 years, with this adjustment taking effect in 2030.
Additionally, there will be some flexibility in retirement age for those who have already completed the required minimum years of service. This gradual transition aims to ease the burden on China’s pension system, which is facing pressure from the country’s rapidly aging population.
Long-Awaited Reform for a Changing Nation
The decision to reform the retirement system has been under discussion for nearly a decade. With China’s economic growth slowing and the population aging quickly, Beijing has been forced to confront a looming pension crisis. The government’s announcement has sparked widespread debate across Chinese social media platforms.
Some users expressed relief that the reforms were not more severe and welcomed the built-in flexibility. A popular comment on Weibo, a platform similar to X (formerly Twitter), garnered thousands of likes for stating, “As long as there’s an option to retire or not based on personal choice, I have no objections.”
However, not everyone is satisfied. Many voiced concerns over the delayed access to pensions and the prospect of working longer years, especially in a job market that remains tough for young people. Unemployment rates among China’s youth remain high, leading some to worry that the new policy will exacerbate job scarcity. “Delayed retirement just means you can’t access your pension until you’re 63, but that doesn’t guarantee you’ll have a job until then,” one user pointed out.
State media, meanwhile, has emphasized the necessity of these changes. They’ve portrayed the reform as an essential update to a system that was first implemented in the 1950s when life expectancy was lower, and educational opportunities were limited.
Yuan Xin, a demographer and deputy head of the China Population Association, told state media that the retirement age has not been revised for 73 years. Since then, China’s social, economic, and demographic landscape has transformed, making the current retirement age “incompatible with national realities.”
Global Comparisons and Domestic Challenges
China’s current retirement age is notably lower than many major economies. According to the Organization for Economic Co-operation and Development (OECD), the average retirement age in 2022 was 63.6 for women and 64.4 for men across member countries. Other nations have also faced challenges related to raising retirement ages. In 2023, France saw widespread protests when its government attempted to raise the retirement age from 62 to 64. Similarly, in the United States, debates over retirement reform have led to gradual increases in the age of eligibility for Social Security benefits, with incentives for delaying retirement until age 70.
China’s new retirement policy reflects growing concerns within its leadership over the country’s demographic challenges. With its population shrinking for the second consecutive year and recording the lowest birth rate since 1949, China faces the prospect of becoming a “super-aged society.” In fact, according to the Ministry of Civil Affairs, more than 20% of the population—around 297 million people—were aged 60 or above by the end of last year.
By 2030-2035, it is predicted that the elderly will make up 30% of the population. This figure is expected to increase to over 40% by mid-century. As a result, the government has ramped up efforts to boost elderly care services and develop a “silver economy,” while also attempting to shore up the pension system.
A 2019 report from the Chinese Academy of Social Sciences forecasted that China’s state pension fund could run out of money by 2035 due to the dwindling workforce. The problem was exacerbated by years of strict pandemic-related lockdowns, which drained local government funds and made pension shortfalls even more likely.
Public Response and Government Focus
This year, thousands of elderly citizens took to the streets in several major cities to protest cuts in their medical benefits, concerned that the government was using their personal accounts to offset pension fund shortages. The demonstrations underscored the growing discontent among retirees and those approaching retirement age.
Meanwhile, even working-age individuals face employment challenges, especially in the aftermath of the pandemic and the government’s crackdowns on various industries. In July, China’s youth unemployment rate reached 17.1% for individuals aged 16 to 24 who are not students, while unemployment for those aged 25 to 29 stood at 6.5%. Many young workers, particularly in tech, have reported age discrimination in hiring, with companies often reluctant to hire anyone over 35.
The new regulations also emphasize supporting young people’s employment and entrepreneurship while working to combat age discrimination in the workplace. The government aims to create more job opportunities for older workers as part of this broader reform.
