China has announced its first retirement age increase since 1978, aiming to curb a shrinking labor force while confronting an aging population.
The new plan will delay retirement by up to five years, according to state-run Xinhua News Agency. Men will now retire at 63, up from 60, while women will retire at 55, compared to 50 for ordinary workers. White-collar women will retire at 58, instead of 55.
This gradual change will be introduced over the next 15 years, starting in January, and is designed to ease the burden on China's pension system by keeping more workers in the labor force.
The delay in retirement comes as China faces the dual challenge of a rapidly aging population and a shrinking tax base, leading to concerns over funding for future pensions.
Shares of Chinese health and elderly care providers saw a boost following the news.
China's current retirement age is one of the lowest globally, despite a significant increase in life expectancy, which has risen from 66 in the late 1970s to 78 today.
With fewer young workers supporting a growing elderly population, the government hopes to alleviate the pressure on pension funds by expanding the workforce and delaying benefit access.
The decision, approved by the Standing Committee of the National People’s Congress, was framed as a response to "demographic development" and aimed at "fully utilizing human resources."
However, the plan has triggered public outrage, with many workers frustrated by the prospect of extended careers and the potential impact on job competition.
Authorities acknowledged the concerns, with Li Zhong, vice minister at the Ministry of Human Resources and Social Security, noting that the gradual introduction of the policy should have a limited effect on youth employment.
Still, the reform is seen as a necessary measure to address the long-term demographic shift brought on by decades of enforcing the one-child policy, which has left a generation of single children supporting an increasingly elderly population.
Efforts to boost birth rates have so far failed to reverse the population decline, with last year’s birth rate reaching a record low.