On October 3, 2024, Chinese authorities announced a plan to gradually raise the retirement age for workers as the country faces a shrinking workforce and significant pension budget shortfalls. The retirement age for men will increase from 60 to 63, while women in blue-collar jobs will see a rise from 50 to 55, and those in white-collar roles from 55 to 58. This policy is set to be implemented over the next 15 years, starting in 2025.
China's current retirement age is among the lowest globally, and even with the new measures, it will remain below that of most developed nations. Experts warn that the delay in raising the retirement age may be too late to address the challenges posed by an aging population. Last year, China's birth rate dropped to a record low, and the total population declined for the second consecutive year.
Experts like Yi Fuxian from the University of Wisconsin-Madison emphasize that the government's recent policy is insufficient and that a structural overhaul of the pension system is necessary. The current decentralized pension system exacerbates regional inequities, complicating financial obligations for local governments.
The implications of this change are significant, particularly for younger workers entering the labor market, as fewer job openings will arise due to delayed retirements. The youth unemployment rate has already reached 18.8%, the highest since new record-keeping began.
This policy shift reflects the government's struggle to manage an aging demographic while avoiding social unrest. Experts caution that any abrupt changes could lead to protests from younger generations and those nearing retirement.