China will gradually raise the statutory retirement age from January 2025 to tackle problems associated with an aging population, experts said.

Wang Xiaoping, minister of human resources and social security, said during a press conference on Friday that there are three main objectives for gradually raising the statutory retirement age.

The first objective is to incrementally raise the statutory retirement age. According to the decision, the retirement age for men will be gradually raised from 60 to 63 over 15 years starting in 2025, while for women cadres and women blue-collar workers, it will be raised from 55 to 58 and from 50 to 55, respectively.

The second objective is to raise the minimum number of years required for basic pension contributions. Starting in 2030, this will be gradually increased from 15 years to 20 years at a rate of six months per year.

The third objective is to implement a flexible retirement system. Under the new policy, people will be allowed to retire up to three years earlier than the statutory age after reaching the minimum number of pension contribution years. However, early retirement will not be permitted before the previous statutory age. The policy also allows individuals to postpone retirement to a later date if agreed upon with their employers, but such a delay can be no more than three years.

The new policy has sparked comments among Chinese citizens and experts. Many have noted that the aging population and changes in demographic structure are key reasons for gradually raising the statutory retirement age.

Song Jian from the School of Population and Health at Renmin University of China and deputy director of the Population Development Studies Center told CGTN that with an aging population and the challenge of pension financial pressure, China's retirement system needs reform.

By the end of 2023, the country had 297 million people aged 60 and over, representing one fifth of the total population. The National Health Commission (NHC) estimates that by 2035, roughly 400 million people will be over the age of 60, accounting for over 30 percent of the population. By around 2050, both the size and proportion of the elderly population are expected to reach their highest levels.

Meanwhile, with a general rise in education levels, the average years of schooling in China went up from 7.04 years in 1990 to 10.75 years in 2021, according to the Human Capital in China 2023 report by the Center for Human Capital and Labor Market Research at the Beijing-based Central University of Finance and Economics.

Song noted that the rise in higher education has delayed the employment age of the new labor force and shortened the actual working years of workers under the current statutory retirement age system, adding pressure on the labor market and pension system.

Song also observed that developed countries have gradually delayed the retirement age since the 1980s to address financial pressures of pensions caused by population aging.

Currently, the statutory retirement age in many developed countries is generally 65 or 67 years old. Thus, the decision to gradually raise the statutory retirement age aligns with socio-economic development and demographic changes, and is consistent with global trends, Song said.

Zhao Zhong, dean of the School of Labor and Human Resources at Renmin University of China, added that raising the statutory retirement age can help mitigate the decline in China's working-age population and sustain social and economic development.