For the first time since the 1950s, China is set to gradually increase its retirement age as the nation faces challenges from an ageing population and a shrinking pension budget.
It was approved on Friday by the top legislative body that the statutory retirement age will increase from 50 to 55 for women in blue-collar jobs and from 55 to 58 for those in white collar jobs. The men will see their retirement age rise from 60 to 63.
China’s retirement ages are among the lowest globally, according to data.
The approved Bill will take effect on January 1st, 2025, with the retirement age gradually increasing every few months for the next 15 years.
Chinese media reported that early retirement before the statutory age will not be permitted, although persons can delay their retirement for maximum of three years.
As of 2030, employees will need to contribute more to the social security system to qualify for pensions. By 2039, persons will be required to have 20 years of contributions to access their pensions.
In 2019 that the country’s primary state pension fund could be depleted by 2035, according to the state run Chinese Academy of Social Sciences projection made prior to the economic impact of the Covid-19 pandemic.
