China to raise retirement age

AFP | China

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China said yesterday it would gradually raise its statutory retirement age, as the country grapples with a looming demographic crisis and an ageing population.

Hundreds of millions of people in China are set to enter old age in the coming decades while the birth rate dwindles dramatically.

The national population fell in 2023 for the second year in a row, with policymakers and experts warning of severe impacts on the economy, healthcare and social welfare systems if action is not taken.

China’s retirement age had not been raised for decades and had been among the lowest in the world.

State news agency Xinhua said top officials in Beijing had decided that “the statutory retirement age for male workers will be gradually extended from the original 60 years to 63 years”.

For women workers the retirement age will be extended “from the original 50 or 55 years to 55 and 58 years, respectively”, depending on the type of job, Xinhua reported.

It said the retirement age would be gradually raised over 15 years from 2025, adding that from 2030, workers would need to make a minimum of 20 years of basic pension contributions instead of the current 15.

The new rules will allow Chinese people “to postpone retirement to an even later date if they reach an agreement with employers”, Xinhua said. They will take effect from January 1, 2025.