China Extends Retirement Age by Up to Five Years to Tackle Pension Crisis and Aging Population Woes

Headline: China Increases Retirement Age by Five Years Due to Aging Population Concerns

The primary legislative authority has approved changes in response to alerts that the pension fund might be depleted by 2035.

China has opted to increase the retirement age by as much as five years in response to economic downturns and the challenges posed by an increasingly elderly population.

The Standing Committee of the National People’s Congress, the premier legislative authority in the country, has decided to increase the retirement age for men from 60 to 63 and for female office workers from 55 to 58.

The most significant rise impacts women in manual labor roles, who were once able to retire at 50, but must now continue working until they are 55.

Previously, retirement ages were generally lower than those found in many advanced economies. For instance, in Japan, individuals are eligible to start collecting pension benefits at 65, and in South Korea, the eligible age for pensions is 63.

For years, China has contemplated increasing the retirement age as local governments now grapple with shortfalls in their pension budgets. The Chinese Academy of Sciences has issued a warning that, if current trends continue, the pension fund may be depleted by 2035.