China Increases Retirement Age for the First Time Since the 1950s

Under a new plan approved on Friday, China will begin raising its retirement age starting January 1, 2025. The retirement age will increase gradually every few months over the next 15 years, as reported by Chinese state media.

According to the updated policy, early retirement will not be permitted, though individuals can choose to delay their retirement by up to three years. From 2030 onwards, employees will also be required to contribute more to the social security system to qualify for pensions. By 2039, a minimum of 20 years of contributions will be necessary to access pension benefits.

The Chinese Academy of Social Sciences had warned in 2019 that the country’s primary state pension fund could be depleted by 2035—an estimate made before the economic impacts of the Covid-19 pandemic were fully realized.

The decision to adjust retirement ages and pension policies was based on “a comprehensive assessment of average life expectancy, health conditions, population structure, education levels, and workforce supply,” according to Xinhua.

The announcement has sparked skepticism and dissatisfaction on Chinese social media. Some users expressed concern over potential future increases in retirement age and the economic challenges facing middle-aged workers. Others noted that the change was anticipated, drawing comparisons to retirement practices in European countries.

China’s population decline and increasing life expectancy have exacerbated the situation. Officials reported earlier this year that China’s life expectancy has risen to 78.2 years, while the proportion of the population over 60 is expected to grow to approximately 402 million by 2040.

China faces a demographic challenge, with a slowing economy, reduced government benefits, and the long-term effects of its one-child policy contributing to the crisis. Over the next decade, around 300 million people aged 50 to 60—equivalent to nearly the entire U.S. population—will exit the workforce, raising concerns about the country’s capacity to support its aging population.