China approves retirement age increase amid demographic challenges – JURIST

China’s top legislative body made a landmark decision Friday to gradually raise the statutory retirement age, a move aimed at addressing the economic strain from a shrinking workforce and an aging population. The proposal, adopted by the Standing Committee of the 14th National People’s Congress, marks the first major adjustment in retirement laws since the 1950s.

Starting January 2025, the statutory retirement age for men will be increased from 60 to 63 over a 15-year period. For women, the retirement age will rise from 50 to 55 for blue-collar workers and from 55 to 58 for those in white-collar roles. The new rules also stipulate that employees will need to make contributions for a minimum of 20 years to receive pensions by 2039, up from the current 15-year requirement. Voluntary retirement will be allowed up to three years before reaching the new statutory age.

The decision, reported by Xinhua News Agency, is a response to China’s evolving demographic landscape. Average life expectancy has risen to 78.2 years, while the proportion of people aged 65 and above has increased significantly, creating pressures on the pension system.

Experts argue that the reform aligns with global trends and addresses the mismatch between the rising life expectancy and the current retirement age. Professor Yuan Xin of Nankai University told the Global Times, “The adjustment reflects domestic changes and international practices, aiming to harness the potential of an aging population and improve human resource efficiency.” The phased implementation will help mitigate potential impacts on the job market and provide time for supporting measures to stabilize youth employment and pension systems.

The new policy also introduces provisions for flexible retirement options for those in demanding jobs, such as labor-intensive roles and extreme environments. This flexibility is intended to balance the needs of different sectors and ensure that those in physically challenging positions can retire earlier if necessary.