China's New Retirement Age: A Necessary Adjustment

Starting next year, China will gradually raise its retirement age, currently among the lowest in major world economies. Over 15 years, men's retirement age will rise to 63, while women's will increase to 55 or 58 depending on their job. This policy addresses a shrinking population and aging workforce.

Starting next year, China will raise its retirement age, which is currently one of the youngest among the world's major economies.

The policy extension has long been considered necessary in a country grappling with a shrinking population and an aging workforce.

The change will be implemented over a span of 15 years, with retirement ages rising to 63 for men and between 55 and 58 for women, depending on their jobs.

Currently, the retirement age is 60 for men, 50 for women in blue-collar jobs, and 55 for women in white-collar positions.

The policy, set to commence in January next year, was announced by China's legislature and reported by state broadcaster CCTV.

Senior research fellow Xiujian Peng of Victoria University in Australia highlighted the high pressure on pension funds due to the increasing number of retirees.

The change will be phased in according to the birthdate of individuals. For instance, a man born in January 1971 could retire at 61 years and 7 months in August 2032, while a man born in May 1971 could retire at 61 years and 8 months in January 2033.

(With inputs from agencies.)