China’s Pension Reform: A Milestone Move Amidst Rising Retirement Age and Fiscal Challenges

China's Pension Overhaul Deemed a 'Milestone', Yet Funding Issues Persist

As Beijing faces a diminishing workforce, increasing the retirement age is seen as inevitable, though analysts believe additional measures are essential to address financial shortfalls.

However, they note, these modifications are not expected to be a perfect solution for budget deficits and may involve some "political discomfort".

For the first time since the 1950s, China has adjusted its retirement age, extending it by up to five years. Additionally, the period that individuals must contribute to pension funds before they can access their benefits has been lengthened from 15 to 20 years.