Lawmakers review plan to raise retirement age in fast-greying China
This week, China’s top legislative body took a significant step towards reforming the country’s retirement age, addressing one of the world’s lowest thresholds. The National People’s Congress (NPC) discussed a proposal to gradually increase the retirement age, aiming to alleviate economic pressures related to a shrinking workforce and mounting pension budget deficits.
Currently, the retirement age in China stands at 60 for men, 55 for women in white-collar jobs, and 50 for women in factory settings—substantially lower than most developed economies. In response to the ruling Communist Party’s announcement in July to adjust these ages, NPC members convened in Beijing to evaluate the plan.
The proposed change is driven by several factors, including a rising life expectancy that reached 78 years in 2021 and is projected to exceed 80 years by 2050. The growing elderly population, expected to rise from 280 million to over 400 million by 2035, is placing unprecedented strain on the pension system. Current data shows each retiree is supported by the contributions of only five workers, a number expected to drop to two by 2050.
Provincial pension funds are already struggling, with 11 out of 31 provincial-level jurisdictions reporting deficits. The Chinese Academy of Sciences warns that the pension system could deplete its funds by 2035.
The proposed reforms have sparked considerable debate online. Xinhua’s report on the NPC discussions has generated over 100,000 comments on Weibo, with concerns about potential job shortages for young people and extended work periods for the elderly. Critics argue that increasing the retirement age may exacerbate unemployment and job competition.
Despite these concerns, experts suggest that raising the retirement age is a necessary adaptation. Stuart Gietel-Basten, a professor at Hong Kong’s University of Science and Technology, emphasized that the issue may not be as dire as it appears. “Older workers are likely to occupy different types of jobs compared to younger job seekers, mitigating direct competition,” he explained.
The draft law, which will be published for public feedback in the coming weeks, faces additional challenges due to the disparity between rural and urban areas and among various provinces. Gietel-Basten noted that while aligning retirement ages with life expectancy is logical, it must be implemented equitably, especially for migrant and gig workers with irregular contributions.
The debate continues as China navigates the complexities of reforming its pension system and balancing the needs of its diverse population.
