China Announces Controversial Retirement Age Increase Amid Economic Woes

The Chinese government passed legislation to raise the retirement age incrementally over the next 15 years starting January 2025. The decision has sparked backlash due to concerns about accessing pensions amid high youth unemployment and an aging population crisis.

The Chinese government has approved a controversial plan to raise the retirement age, aiming to implement the changes over a 15-year period beginning January 2025. This move comes as the country grapples with a shrinking workforce, a declining economy, and a pension fund crisis.

Under the new regulations, the retirement age will gradually increase to 63 for men and from 55 to 58 for women, depending on their occupation. Previously, men retired at 60, while women retired at either 50 or 55 based on their jobs. Additionally, the minimum working period required to receive a pension will extend from 15 to 20 years by 2030.

This legislation has triggered widespread criticism on social media, with many accusing the government of attempting to delay pension access amid high youth unemployment rates. With over 20% of its population aged 297 million being elderly, China faces predictions that this demographic will account for 30% of the population between 2030 and 2035, potentially rising to 40% by 2050. A 2019 report warned that the state pension fund could be depleted by 2035, exacerbating concerns. The employment market remains challenging post-pandemic, with youth unemployment reaching 17.1% in July, and age discrimination in hiring persists, particularly in tech sectors.

(With inputs from agencies.)