China to raise retirement age starting 2025 amid demographic crisis

BEIJING, CHINA — China has announced plans to raise its retirement age for the first time since 1978, aiming to counter a demographic crisis and ease pressure on its pension system.
China’s retirement age reform
Starting in January 2025, the retirement age for men will gradually increase from 60 to 63 years. Women will see their retirement age rise from 50 to 55 years for blue-collar jobs and from 55 to 58 years for white-collar positions.
The adjustments will be phased in over a period of 15 years, as reported by state-owned news agency Xinhua.
This decision comes as China grapples with a declining population, which fell to 1.4 billion in 2023, marking a decrease for the second consecutive year. The country is facing demographic pressures, with more than 20 million individuals expected to retire annually between 2023 and 2035.
Economic implications and public reaction
The new policy has sparked mixed reactions among the public.
Zhang Jin, director of the Research Institute of China Health and Elderly Care Group, said the change would help alleviate economic strain. “If you delay their retirement, they can both create value and drive consumption,” Zhang noted, adding that retired individuals typically spend less, which impacts overall economic growth.
However, younger workers have voiced their frustrations. Zhao, a Beijing-based white-collar worker, remarked, “Today I saw the news and I’m seriously doubting whether I can live until retirement.” Many young people fear that they will be burdened with supporting an ageing population for longer periods.
Chen, a civil servant in Zhejiang province, added to the discontent by stating, “The bottom line is that they strip my retirement time and basically take my money from my pocket,” expressing concern over losing two and a half years of pension benefits.
As part of the reforms, the minimum contribution period required for receiving basic monthly pension payments will also increase from 15 years to 20 years starting in January 2030. This change aims to alleviate pressure on China’s underfunded pension system while encouraging older individuals to remain in the workforce longer.
Other countries face aging crisis
With life expectancy rising and birth rates declining, many nations are reconsidering their approaches to retirement age and pension funding.
From 2026, employers in Singapore can only ask staff to retire at 64, up from the current 63. By 2030, the retirement age will reach 65, while re-employment extends to 70.
South Korea also grapples with a rapidly aging population and shrinking workforce. The country is increasingly looking to attract foreign talent to fill crucial skilled labor roles like scientists, teachers, managers and IT professionals.
Meanwhile, in the United States, older employees are increasingly delaying retirement to continue working. In fact, one in eight American retirees is likely to rejoin the workforce in 2024 due to high inflation.
A 2023 study also urged companies to prepare for an aging workforce as 95% of employers lack strategies to ensure an age-inclusive culture.