China to Gradually Raise Retirement Age Amid Pension Pressure

China plans to gradually increase its statutory retirement age to address pension budget pressures, as life expectancy rises and the population ages. The reform, outlined in a key policy document, aims to be completed by 2029 and allows workers to choose to work longer.

China will incrementally increase its statutory retirement age, currently one of the lowest globally, as it grapples with rising pension budget pressures and provincial deficits. The urgency of this reform is underscored by a jump in life expectancy to 78 years in 2021 from 44 years in 1960, a figure expected to surpass 80 years by 2050.

This announcement was made in a critical policy document on Sunday, which also introduced strategies to address the falling birth rate and aging population, with both trends expected to persist for decades. 'In line with the principle of voluntary participation with appropriate flexibility, we will advance reform to gradually raise the statutory retirement age in a prudent and orderly manner,' the authorities stated.

The reforms, targeted for completion by 2029, reveal that the current retirement age is 60 for men—five to six years below that in most developed economies—and 55 for white-collar women and 50 for factory-working women. Recent policy narratives have aimed to raise this age, marking the first opportunity for workers to opt to continue working. Health authorities project that the population aged 60 and older will rise from 280 million to over 400 million by 2035, equivalent to the current populations of Britain and the United States combined.

(With inputs from agencies.)