China to raise retirement age as demographic crisis looms

People wait to cross a road near a construction site in Beijing on July 9, 2024.

China said Friday it would gradually raise its statutory retirement age, as the country grapples with a looming demographic crisis and an older population.

Hundreds of millions of people in China are set to enter old age in the coming decades while the birth rate dwindles dramatically.

The national population fell in 2023 for the second year in a row, with policymakers warning of potentially severe impacts on the economy, healthcare and social welfare systems if action is not taken.

China's retirement age had not been raised for decades and had been among the lowest in the world.

"The statutory retirement age for male workers will be gradually extended from the original 60 years to 63 years," a decision by Beijing officials shared by Xinhua said.

For women workers the retirement age will be extended "from the original 50 or 55 years to 55 and 58 years, respectively", depending on the type of job.

The retirement age will begin to be gradually raised over 15 years from 2025, state media said.

"Starting 2030, the minimum year of basic pension contributions required to receive monthly benefits will be gradually raised from 15 years to 20 years at the pace of an increase of six months annually," Xinhua said.

The new rules will also allow Chinese people "to postpone retirement to an even later date if they reach an agreement with employers", it added.

The move was based on a "comprehensive assessment of the average life expectancy, health conditions, the population structure, the level of education and workforce supply in China", state media said.

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