China may “gradually boost” the country’s pension age for the first time since the 1950s as the nation deals with an aging population and a shrinking pension system.
The most senior legislative body approved ideas to increase the statutory retirement age for women in blue-collar positions from 50 to 55 to 58 for women in white-collar positions on Friday.
People may see a rise from 60 to 63.
The pension age in China is among the lowest in the world right now.
According to the plan passed on Friday, the change will set in from 1 January 2025, with the respective retirement ages raised every few months over the next 15 years, said Chinese state media.
According to state media company Xinhua, people can stretch their retirement by no more than three decades, but retiring before the legal age will not be permitted.
People will also be required to contribute more to the social security system in order to get pensions starting in 2030. By 2039, they would have to time 20 years of efforts to get their incomes.
The state-run Chinese Academy of Social Sciences said in 2019 that the country’s major state pension fund may run out of money by 2035- and that was an measure before the Covid-19 crisis, which hit China’s economy difficult.
The plan to raise pension ages and adjust the pension policy was based on” a thorough examination of the average life expectancy, health conditions, the community composition, the level of training and labor supply in China”, Xinhua reported.
China’s huge population has fallen for a second consecutive year in 2023 as its birth rate continues to decline. Meanwhile, its average life expectancy has risen to 78.2 years, officials said earlier this year.
On the Taiwanese computer, some skepticism and dissatisfaction with the statement has been expressed.
One person wrote on a Chinese social media site Weibo,” In the next ten years, there will be another costs that will delay pension until we are 80.”
” What a terrible time! Give increases and pension age increases are the norm for middle-aged employees. Another struck in,” Those who are unemployed find it extremely difficult to find jobs.”
Some said they had anticipated the news.
” This was expected, there is n’t much to discuss.
Most Western countries ‘ people retire at the ages of 65 or 67, while women do so at 60. One Weibo user said,” This is going to be the trend in our country as well.”
Over the next generation, about 300 million people, who are now aged 50 to 60, are set to leave the Chinese labor. This is the region’s largest age group, almost equal to the size of the US population.
China’s pension fund is running out, and there is n’t enough time left to create one to cover the growing number of elderly people.
So who will appear after them? The response is influenced by where you go and who you ask.