China is set to “gradually raise” its retirement age for the first time since the 1950s, responding to its aging population and the financial strain on its pension system. Starting on January 1, 2025, the retirement age for women in blue-collar jobs will increase from 50 to 55, and for women in white-collar jobs from 55 to 58. The retirement age for men will rise from 60 to 63. This adjustment will continue incrementally over the next 15 years.
The new policy, which prohibits early retirement, aims to address the challenges posed by China’s shrinking working-age population and a pension fund projected to run out of money by 2035. Workers will also be required to contribute more to the social security system, needing 20 years of contributions by 2039 to qualify for pensions.
The announcement has sparked debate online, with some expressing frustration about the impact on middle-aged workers already facing job challenges. Others see the reform as inevitable, drawing comparisons to retirement ages in Western countries like the EU.
China’s aging population is growing rapidly, with the percentage of people over 60 expected to rise from 254 million in 2019 to 402 million by 2040, contributing to a looming demographic and economic crisis.