The Standing Committee of the Chinese National People's Congress, which serves as China's parliament, has endorsed a plan to gradually delay retirement for employees.
Men’s retirement age will increase from 60 to 63, while women’s will rise from 50 and 55 to 55 and 58, the report says. The changes will take place over 15 years, starting on 1 January 2025.
The changes will also see women’s retirement age rise to 55 for ordinary workers and 58 for those in management positions. The current retirement age is 60 for men, 55 for white-collar women workers, and 50 for women in blue-collar jobs.
This will be the first increase in the retirement age since 1978. The approval follows a July announcement that the retirement age would rise in a “voluntary, flexible manner”.
In addition, Chinese workers will have to contribute to social pension funds for 20 years, extended from the current 15 years, before they are eligible to receive their retirement payout.
Given China’s ageing population, reform of the pension system has long been seen as needed. As the working-age population shrinks and the number of retirees grows, concerns have been voiced that government-run basic pension funds will be depleted by 2035.