China’s retirement age is one of the lowest in the world and it’s set to increase for the first time since 1950. The current retirement age in China is 60 for men, 50 for women who work in factories, and 55 for women who work white collar jobs. While retiring early may sound appealing, it isn’t always a blessing. The country has had one of the lowest retirement ages in the world because they’ve had one of the lowest average life expectancies in the world.
Starvation was the leading cause of death in China in the 1950s when the country suffered a catastrophic famine, and the average life expectancy was age 44. Today, the health of the Chinese people has vastly improved, and they are living longer. Their early retirement age, and increased life expectancy, combined with a lack of young workers caused by China’s one-child policy has put a strain on the pension system to the point where it has become unsustainable if not reformed. The solution?
Beginning in January of 2025, the NPC (National People’s Congress) will begin gradually raising the retirement age from 60 to 63 for men, 50 to 55 for female blue-collar workers, and 55 to 58 for women who work white collar jobs, with additional caveats. By 2030, Chinese citizens will not receive a pension unless they have contributed to the country’s social security system. By 2039, they may not access their pension unless they have contributed for a minimum of 20 years.
Citizens have been taking to the internet to express their dread over the coming changes to the retirement system, while economists and global health experts say the changes couldn’t happen soon enough. Budget shortfalls and longer life expectancies are happening everywhere and that’s why countries like the United States, Japan, Italy, the Netherlands, and France have already launched similar plans to keep their retirees cared for and their countries thriving.