With nearly 300 million people over the age of 60, expected to rise to 400 million by 2035, China faces a significant demographic challenge.
The working-age population has been shrinking since 2012, with over 3 million workers lost annually, leading to a reduced labor force that must support an increasing number of retirees
The country is experiencing significant pressure on its pension system, with projections that the primary state pension fund could be depleted by 2035 if reforms are not implemented
China's current retirement ages are among the lowest globally, established during a time of shorter life expectancy. The average life expectancy has now risen to 78.6 years.
Raising the retirement age is viewed as essential for maintaining economic growth and stability, allowing older workers to remain in the workforce longer and delaying pension payouts
The dependency ratio, which measures the number of retirees supported by the working population, is projected to worsen, increasing the financial burden on fewer workers
As health standards improve, older individuals are capable of working longer, making it feasible to extend their working lives
The policy change includes a requirement for workers to contribute to pension funds for 20 years, up from 15, to qualify for benefits, which aims to strengthen the pension system
Many developed nations have higher retirement ages, and China's adjustment reflects a broader trend of adapting retirement policies in response to demographic shifts and economic pressures