In a significant move to adapt to changing demographics, the Chinese government has proposed raising the statutory retirement age. Currently set at 60 for men, 55 for women cadres, and 50 for women blue-collar workers since 1951, this proposal aims to better align with the country’s evolving economic and social landscape.
The reform comes as China faces a rapidly aging population. Life expectancy in China has soared from under 45 years in 1951 to over 78 years in 2023, surpassing the average of upper-middle-income countries. With a healthy life expectancy nearing 70 years, many workers deemed retired still possess strong capabilities, making an extension of their careers both feasible and beneficial.
Additionally, the improvement in educational levels plays a crucial role in this decision. The average years of schooling for individuals aged 15 and above have increased from 5.3 years in 1982 to 9.9 years in 2020. With over 60 percent gross enrollment in higher education, a significant portion of the new labor force is well-educated, enabling them to contribute effectively for a longer period.
Raising the retirement age is expected to offer well-educated workers more time to apply their skills and realize their personal value. It also aims to utilize human resources more efficiently, transitioning China’s demographic dividend into a talent dividend. This strategic reform underscores the government's commitment to fostering sustainable economic and social development in the face of new challenges.
Reference(s):
Retirement age reform in China to address demographic shifts
cgtn.com
