China's Retirement Age Reform: A Response to Pension System Pressure and Aging Population

China's Aging Population and Retirement Age Increase

China is poised to raise its statutory retirement age to address mounting pressure on its pension system, amid an aging population and shrinking workforce. The country’s retirement age, which has remained unchanged since the 1950s, is currently one of the lowest in the world — set at 60 for men, 55 for white-collar women, and 50 for blue-collar women.

The proposed reforms are expected to gradually increase the retirement age to 65 for all citizens, with implementation anticipated over several years.

The Implementation Plan

A long-awaited change was approved during a high-level meeting of the Communist Party Central Committee in July. Officials described the process as gradual, with careful and orderly steps. A report from the Chinese Academy of Sciences indicated that the final retirement age might be set at 65.

China's pension system, the largest in the world with 1.05 billion contributors and beneficiaries, faces significant stress due to demographic changes. The aging population is a central issue driving these reforms. As of 2023, 297 million citizens are aged 60 and older, expected to surpass 400 million by 2035.

Pension System Challenges and Public Sentiment

Experts warn that the current pension system is unsustainable, with projections from the Chinese Academy of Sciences suggesting potential insolvency by 2035. A divided public response reflects anxiety about job security and age discrimination, particularly under the 996 work culture.

• Eleven out of 31 provincial jurisdictions in China are already operating pension budget deficits.
• Many workers express concerns regarding employability as they age.
• Rural citizens often face greater challenges due to disparities in life expectancy and healthcare access.

Exploring Solutions and Future Considerations

While raising the retirement age is a key reform, other strategies could be employed to tackle demographic challenges. Suggestions include investing in gerontechnology and promoting a culture of volunteerism.

Pension reform discussions occur worldwide, and the solution may require a combination of policy changes tailored to Japan's unique demographic context.