China is taking significant steps to modernize its retirement system, introducing interim measures aimed at creating a more flexible approach for its aging population. Announced on Wednesday, these measures build upon the existing policy to gradually increase the statutory retirement age.
The new guidelines outline the procedures for applying for flexible retirement and set the requirements for receiving basic pensions. Starting January 1, 2025, the retirement age for men will rise from 60 to 63 over the next 15 years. Female cadres will see their retirement age increase from 55 to 58, while female blue-collar workers will see it go up from 50 to 55.
Additionally, beginning in 2030, the minimum number of years required for basic pension contributions will increase from 15 to 20 years, with a steady increase of six months annually. This change aims to ensure the sustainability of the pension system by extending the contribution period.
The measures also provide more flexibility for individuals regarding their retirement plans. People can choose to retire up to three years earlier than the new retirement age once they meet the minimum pension contribution requirements. Conversely, there is also the option to delay retirement by up to three years through mutual agreement with employers, allowing for greater personal and professional flexibility.
Zhang Yi, a professor from the School of Public Economics and Management at Shanghai University of Finance and Economics, commented on the changes: \"Our country's pension structure includes the basic pension insurance system and their private pension accounts. If people retire a year later, the average social salary will be higher, the payment period will be longer, and the pensions will be higher.\" He added, \"A flexible retirement system gives people greater choice to choose the retirement time based on their own needs, willingness to work, physical conditions, family circumstances and corporate needs.\"
These measures reflect China's proactive approach to addressing the challenges posed by an aging population and changing economic dynamics, ensuring that the retirement system remains robust and adaptable to future needs.
Reference(s):
China unveils interim measures for flexible retirement system
cgtn.com
