Proposed retirement delay accords with changing realities in China. Photo: TUCHONG

On Sept. 13, the 11th Session of the Standing Committee of the 14th National People’s Congress deliberated on a draft proposal submitted by the State Council, China’s cabinet, on gradually raising the retirement age. This marks the first adjustment to the statutory retirement age since the founding of the PRC.

According to the proposal, the government plans to gradually raise the retirement age over a 15-year period starting in 2025. The retirement age for men will increase from 60 to 63, while for women, blue-collar workers will see an increase from 50 to 55 years and cadres from 55 to 58 years. The gradual, phased approach will see male and female civil servants retire three months later each year, and female blue-collar workers six months later, until the new thresholds are reached by 2040. The reform adheres to three core principles: voluntarism, flexibility, and gradualism. 

Demographic shifts

Currently, the retirement age in China for men is 60 while for women, it is 55 for cadres and 50 for blue-collar workers. This arrangement was made in the 1950s and has remained unchanged since then.

Over the past decades, significant shifts have occurred in China’s average life expectancy, the extent of its aging population, and the composition of its labor force. Statistics show that Chinese residents’ average life expectancy has risen from around 40 in the early years after the PRC was founded to 78.6 in 2023. Moreover, China’s population has become increasingly aged. By the end of 2023, the population aged 60 and above had reached 297 million, accounting for 21.1% of the total. It is expected that the number of people aged 60 years old and above will exceed 400 million, accounting for 30% of the nation’s total population around 2035. 

According to He Dan, head of the China Population and Development Research Center, the Center has projected that the average life expectancy is highly likely to surpass 80 years old before 2035, highlighting the necessity of preparing for a highly aged society.

In recent years, the size and structure of China’s working population have also undergone remarkable shifts. First, the working-age population—aged 16 to 59—began to decline in 2012, dropping by more than 3 million on average every year, with the decline showing signs of acceleration. Meanwhile, the average education for the working-age population increased from 8 years in 1982 to 11.1 years in 2023, and the average years of schooling for the newly added workforce has topped 14 years. 

In addition to the shrinking labor force, the rising years of education indicates that new generations of laborers, who have received good education, enter the labor market six years later than previous generations on average, He Dan said. This delay in joining the workforce hinders the full utilization of human resources if the retirement age is not raised.

In general, the current retirement age in China appears out of step with the extended average life expectancy, continuous population aging, shifting labor structure, and underutilization of human resources. 

To address these issues, the Chinese government released a plan in 2021 to gradually raise the retirement age. Earlier this year, a resolution adopted at the Third Plenary Session of the 20th CPC Central Committee in July made it clear that China will advance reform to gradually raise the statutory retirement age in a prudent and orderly manner in line with the principle of promoting voluntary participation while allowing appropriate flexibility.

Global practices

Population aging has become an acute problem in many countries around the world. Faced with challenges like labor shortages and widening pension gaps, governments are actively seeking effective countermeasures. Among other policy interventions, raising the retirement age represents a critical approach.

Given the increased average life expectancy, accelerated aging, and declining birthrates, alongside economic development status and individual preferences, the retirement age falls within the range of 62-65 years old in many countries, with some planning further increases. 

In 2020, the statutory retirement age for men and women in the United Kingdom was extended to 66, with plans to increase it to 67 between 2026 and 2028, and further to 68 between 2044 and 2046. According to a report released by the International Longevity Centre UK, the country intends to raise the retirement age to 71 by 2050.

In March this year, Singapore announced that the retirement age for its citizens will be raised from 63 to 64, and the upper age limit for rehired employees will be extended from 68 to 69, both taking effect on July 1, 2026. In countries such as Argentina, Romania, Brazil, and Mexico, the statutory retirement age for men is set at 65, while for women, it is either 60 or 65.  

These international experiences further justify China’s upcoming reform to the statutory retirement age. Moreover, policymakers are mulling and detailing new policy arrangements to ensure elderly people’s employment and safeguard their rights and interests.