Retired men are seen together on a spring day at a local park on April 18, 2024 in Beijing, China. China's capital, with a population of more than 20 million, boasts numerous parks where many locals frequent to escape the busy streets of the city. Kevin Frayer/Getty Images
On the third plenum of the Communist Party held last week, China's authorities discussed to raise the country's retirement age in a "voluntary and flexible" manner, aiming to address the challenges from an aging population.
As detailed by SCMP, the government's strategy involves a gradual increase in the retirement age, which will be adjusted in an orderly manner over time. This approach aims to alleviate the pressure on the pension system, which faces great strain due to the declining birth rate and increasing life expectancy.
The policy outlines plans to enhance the "silver economy" by creating diverse job opportunities for older individuals and improving community care services, particularly in rural areas.
In a recent report by Al Jazeera, the retirement age in China is set at 60 for men, 55 for female office workers, and 50 for female blue-collar workers.
However, with life expectancy having risen from 35 in 1949 to 77 today, the existing retirement age no longer aligns with the demographic and economic outlook.
The Chinese Academy of Social Sciences has projected that the main urban state pension fund could be depleted by 2035, which makes the reform "urgent" for Chinese officials and citizens.
Despite the policy's intentions, there is concern about its potential impact on the job market and social acceptance. Analysts warn that raising the retirement age could encourage employment pressures and may be met with resistance from segments of the population, particularly those in lower-income or demanding jobs.
However, the Chinese government's approach includes measures to ensure a smooth transition, including better support systems and a more balanced fiscal relationship between central and local governments.
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