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According to a media report, China is planning to gradually raise the retirement age in view of the rapidly aging society . The People's Republic is striving for a "progressive, flexible and differentiated approach to raising the retirement age," Jin Weigang, President of the Chinese Academy of Labor and Social Insurance Sciences, was quoted as saying by the state-run Global Times newspaper on Tuesday.
"People approaching retirement age only need to delay retirement by a few months." Young people might have to work a few more years. But there will be a long adjustment and transition period, said the senior government adviser.
China has yet to formally announce a change in the retirement age, which is among the lowest in the world. It is currently 60 years for men, 55 years for female clerical workers and 50 years for women working in factories. "The most important feature of the reform is that people can decide for themselves when to retire based on their circumstances and conditions," Jin said.
Life expectancy in China has increased rapidly
With 1.4 billion inhabitants, China is the most populous country in the world. However, the one-child policy in force from 1980 to 2015 means that too few young people are entering the labor market. This increases the pressure on the pension fund. The National Health Commission projects that the number of people over 60 will increase from 280 million to more than 400 million by 2035 - that's the entire current population of the UK and US combined.
At the same time, life expectancy has increased rapidly in recent decades as the country has grown economically. In 1960 it was still 44 years, in 2021 it was already 78 years - a higher value than in the USA. According to studies, by 2050 it will probably exceed the 80-year mark.
Each pensioner is supported by contributions from five employees
Currently, each pensioner is supported by the contributions of five employees. The ratio is only half what it was a decade ago. According to experts, it could be as low as 4:1 by 2030, and as low as 2:1 by 2050. The current pension system is no longer sustainable, according to demographers and economists, relying on a shrinking workforce to support a growing number of retirees. According to the Treasury Ministry, 11 of China's 31 provinces have a pension budget deficit. The state-run Chinese Academy of Sciences assumes that the pension system will run out of money by 2035.
