Employees Retirement age: The government has announced a plan to increase the retirement age of employees, which will be implemented in the next 15 years starting from January 2025.
The Chinese government is increasing the retirement age of its employees. According to China’s state broadcaster CCTV, the country’s National People’s Congress (Parliament) announced this on Friday. This policy will be implemented gradually over 15 years. In this, the retirement age for men will be increased to 63 years. The retirement age for women will be 55 and 58 years based on their role.
Currently in China, the retirement age for men is 60 years and for women in the working class (blue collar) is 50 years and for women in the office working class (white collar) is 55 years. This retirement age is the lowest among the major economies of the world.
Xiujian Peng, who studies China’s population and economy, has explained the reason behind this. Peng is a research scholar at Victoria University in Australia. He said that people are reaching retirement age on a large scale. Therefore, there is a lot of pressure on the pension fund. Therefore, I think that now the time has come to work seriously in this direction. The last time the retirement age was fixed was in the year 1950. At that time, the life expectancy there was about 40 years.
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This policy of the Chinese government will come into effect from next year. There will be gradual changes based on the date of birth of people. An example of this has also been given in the chart released with the policy. For example, if a person is born in January 1971, then he will retire in August 2032 at the age of 61 years and seven months. Similarly, a person born in May 1971 will retire in January 2033 at the age of 61 years and eight months.
According to experts, the increasing population of elderly people has played an important role in China’s decision. By the end of 2023, the number of people over 60 years of age in China will be around 300 million. At the same time, this number is estimated to increase to 400 million by 2035.
This will be more than the population of America. The Chinese Academy of Social Sciences had previously said that by then the public pension funds would have ended. Yanzhong Huang, Senior Fellow of Global Health at the Council on Foreign Relations, said that the end of pension and social benefits is not only a problem of China. This is happening everywhere. But the increasing population of elderly people in China is a big challenge.
Young people in China are not having children citing rising inflation. Due to this, the young population is decreasing there. In 2022, China’s National Bureau of Statistics reported that for the first time there were 850,000 fewer people in the country at the end of the year than the previous year. In 2023, the population fell by another 2 million. The basis of pension in China is the people currently working, whose expenses meet it. According to research, here five working employees bear the burden of one retired person. This figure is expected to increase further over time.
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