Understanding China's Ageing Population and Retirement Age Changes

China's New Retirement Age

In a long-awaited move, China's top legislative body announced that the country will raise its retirement age by up to five years. This change will see the retirement age for men move from 60 to 63, while female office workers will see their retirement age increase from 55 to 58. For female blue-collar workers, the retirement age will rise from 50 to 55. These changes will be implemented gradually over the next 15 years, starting January 1, 2025.

Global Context: Retirement Ages

China's previous retirement ages were significantly lower than those in most developed economies. The Organization for Economic Co-operation and Development (OECD) reported that the average retirement age in its member countries stood at 63.6 for women and 64.4 for men in 2022. Here’s how China's new retirement age compares:

• France: France gradually increased its mandatory retirement age from 60 to 62, and recently extended it to 64 for individuals born after 1968.
• United States: The statutory retirement age in the U.S. is 67, though many retire sooner, with men averaging 65 and women 63.
• Japan: Japan raised the retirement age to 65 in 2013 and has plans to increase it to 70, although it's not mandatory for companies.
• Italy: The full retirement age is currently 67, with adjustments based on life expectancy, paused during the COVID-19 pandemic.

The shifts in retirement ages reflect a global response to an ageing society, highlighting the need for robust social security benefits and adequate pension contributions.