China Approves Plan to Raise Retirement Age From January 2025

Retirement Age to Gradually Increase Over the Next Five Years

China has approved a plan to gradually raise the retirement age for its citizens, starting from January 2025. The move is aimed at addressing the country's aging population and shrinking workforce, and is expected to have a significant impact on the country's economy and society.

Current Retirement Age in China

Currently, the official retirement age in China is 60 for men and 55 for women in urban areas. However, many people continue to work beyond these ages, either by choice or due to financial necessity.

Gradual Increase in Retirement Age

The new plan will see the retirement age gradually increase over the next five years. For men, the retirement age will increase by one year every three years, reaching 65 by 2035. For women, the retirement age will increase by one year every five years, reaching 60 by 2035.

Reasons for Raising the Retirement Age

There are several reasons why China is raising the retirement age. One reason is the country's aging population. The number of people over the age of 65 in China is projected to increase from 10% in 2020 to 20% by 2050. This is putting a strain on the country's pension system, which is funded by contributions from working people.

Another reason for raising the retirement age is the country's shrinking workforce. China's working-age population has been declining in recent years, due to factors such as the one-child policy and rising education levels. This is making it difficult for businesses to find the workers they need.

Impact of Raising the Retirement Age

Raising the retirement age is likely to have a significant impact on China's economy and society. On the one hand, it could help to boost economic growth by increasing the size of the workforce. On the other hand, it could also lead to increased unemployment and poverty among older workers, who may find it difficult to find new jobs.

Conclusion

China's decision to raise the retirement age is a major step that will have a profound impact on the country's economy and society. It is a necessary step to address the challenges of an aging population and shrinking workforce, but it is also likely to bring about significant challenges.