BEIJING: China plans to gradually raise the statutory retirement age based on the principle of voluntary participation with flexibility. The adjustment reflects a broader shift in the country’s pension policy and is in line with the global trend of nations adapting to demographic shifts and changing workforce demands.
The decision addresses growing concerns about China’s aging population and the need for sustainable social security solutions. In response to similar demographic challenges faced by other countries, this adjustment aims to manage the domestic situation while aligning with international practice.
“The main purpose of the pension system is to protect workers’ rights to rest once they leave the workforce,” said Professor Song Jian of the School of Population and Health at Renmin University of China, who serves as deputy director of Population Development Studies. Center “This system is intricately linked with the labor market, employment, social security and pension benefits.”
Historical context and global comparison
The concept of retirement as a formal system began in Germany in the late 19th century under Chancellor Otto von Bismarck. In 1889, Germany introduced the world’s first state pension system, offering financial support to retirees aged 70 and over. This system set a precedent that influenced pension policies around the world.
Today, developed countries generally set the retirement age at 65 or 67, although actual retirement practice may vary. For example, the US sets its retirement age at 67 for those born in 1960 or later, with early claims leading to reduced benefits and late claims offering higher benefits. Japan plans to raise its retirement age to 70, requiring at least 10 years of contributions and offering adjusted benefits for early or delayed retirement. Germany’s retirement age is set to gradually rise to 67 by 2031, with additional benefits provided through company and private pensions.
“Reducing the retirement age and increasing pension benefits has long been an important issue for workers around the world,” Song told CGTN. “Since the 1980s, when population aging has intensified, many governments have responded by raising the retirement age to ease the financial pressure on pension systems.”
China’s retirement policy, implemented after the founding of the People’s Republic of China, currently sets the retirement age at 60 for men, 55 for women in administrative positions, and 50 for women in labor-intensive jobs.
“The modern pension system in China was established after the founding of the People’s Republic of China. Although it has undergone various adjustments and reforms, the legal retirement age has changed very little,” Song said. “With an increasing aging population and increasing financial pressures on pensions, the need for further reform of the pension system is growing.”
China’s pension system has been adjusted to meet social and economic developments as well as demographic changes. The country’s recent move to consider delaying the statutory retirement age is in line with global trends, Song said.
She noted that the retirement age globally followed a “spoon-shaped” curve: high at first, then declining, and now rising again. Many countries have adopted flexible retirement options that allow workers to choose their retirement age and encourage later retirement.
“In China, life expectancy has almost doubled since the 1950s, so longevity has become the norm. Population aging pressures are increasing,” added Song, also deputy secretary-general of the China Population Association.
“As higher education becomes more common, the age of entry into employment is also delayed, reducing the actual working hours of workers. These demographic shifts are increasing pressure on both the labor market and the pension system.”
Once implemented, the gradual increase in the statutory retirement age will affect both the supply and demand for work. On the supply side, it can help address labor shortages caused by a declining working-age population and maximize workforce potential, Song says. On the demand side, the varying willingness of workers to delay retirement and the varying needs of workforce quality and quantity in different positions will affect the flexibility to extend working years.
