China to gradually raise retirement age amid demographic shifts, changing labor dynamics

Chinese lawmakers on Friday approved a decision to gradually raise the statutory retirement age, marking the first adjustment to the policy since it was established in the 1950s.

Previously, the retirement age in China was 60 for men, 55 for women cadres and 50 for women blue-collar workers. This policy was implemented in the 1950s when the average life expectancy was less than 50 years and has remained unchanged for decades.

Under the new decision, starting in 2025, the retirement age for men will be raised from 60 to 63 in the course of 15 years, while for women cadres it will be raised from 55 to 58 and from 50 to 55 for women blue-collar workers, the Xinhua News Agency reported.

This adjustment will be flexible and voluntary, allowing employees to choose to retire up to three years earlier or delay their retirement by up to three years, according to an official from the Ministry of Human Resources and Social Security at a press conference on Friday.

"Although China first proposed delaying the statutory retirement age in 2013, the idea has been under careful consideration since then," said Prof. Song Jian from the School of Population and Health at Renmin University of China and deputy director of the Population Development Studies Center. The emphasis on principles such as "gradual," "voluntary" and "flexible" is aimed at balancing the interests of all parties while ensuring a safe and orderly transition.

Longer life expectancy

The decision comes as China faces a rapidly aging population. By the end of 2023, the country had 297 million people aged 60 and over, representing 21.1 percent of the total population. The National Health Commission (NHC) estimates that by 2035, approximately 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.

This trend is closely tied to increased life expectancy. The average life expectancy in China has reached 78.6 years, the latest report from the NHC shows. Projections from the China Population and Development Research Center suggest that the number of people over 80 will quadruple by 2050.

"With China's population aging rapidly and life expectancy nearly doubling from about 40 years in the 1950s to nearly 80 today, delaying the statutory retirement age has become an inevitable trend," Song, also the deputy secretary general of the China Population Association, told CGTN. "Longevity is now a basic fact of life, and this demographic shift presents new opportunities for adaptation and growth."

Workforce changes

Increased life expectancy has extended the age at which people can remain active in the workforce, explained Zhao Zhong, dean of the School of Labor and Human Resources at Renmin University of China and director of the China Institute for Employment and Welfare Studies. "Adjustment of retirement policies can help boost the national labor force, which is crucial for a country's social and economic development."

As China continues to advance high school education, strengthen vocational and technical training, and increase higher education enrollment, the overall level of education has steadily improved, with the average years of schooling among the country's labor force rising each year. Currently, the average educational attainment of China's new labor force exceeds 14 years, with 250 million people having received higher education.

As higher education becomes more widespread, the average years of schooling continue to rise, delaying the entry of new workers into the labor market and reducing the actual working years under the previous retirement age system.

"The essence of the retirement system is to protect workers' right to rest after they leave their jobs, which is closely linked to the labor market, employment policies and social security, pension benefits," said Prof. Song.

The new policy outlines measures to enhance the pension incentive system, prioritize employment, protect the basic rights and interests of workers beyond the statutory retirement age, and improve the services of elderly care and childcare.

Adapting to an evolving labor market

With advancements in science and technology and shifts in the economic structure, there has been an increase in knowledge-based and skill-based jobs. In fields like medicine, where extensive education is required, delaying the retirement age can provide additional benefits.

"This shift in the labor structure creates opportunities for technological innovation during high-quality development," explained Tian Xueyuan, a member of the Chinese Academy of Social Sciences and former director of its Population Research Institute. "However, labor shortages in some industries remain a challenge that can be mitigated by delaying retirement."

Guan Bo, a researcher at the Chinese Academy of Macroeconomic Research, emphasized the urgency of unlocking the potential of labor resources to enhance productivity in the context of a high-quality population.

"The dynamics between labor and production have shifted significantly with rising life expectancy, better health and increased social production capacity over the past few decades, which offers opportunities to adjust relevant policies," he said. 

(Cover image designed by Zhu Shangfan.)