In a significant move to tackle the challenges posed by its shrinking working-age population, China's top legislative body is currently reviewing a draft decision to incrementally increase the statutory retirement age. Reports from the official Xinhua News Agency reveal that the Standing Committee of the National People’s Congress discussed a variety of legislative bills, with the proposal to raise the retirement age being a key topic of discussion.
China has been facing a demographic crisis, with its population experiencing negative growth since 2022. The proportion of individuals aged 65 and above already accounts for 14.2% of the total population as of 2021. According to a report by state broadcaster CCTV, this trend is expected to worsen in the coming years, with projections indicating that the number of individuals aged 60 and above will surpass 400 million by 2035, exceeding 30% of the total population.
Earlier in July, authorities in Beijing had hinted at plans to raise the retirement age in a "voluntary, flexible manner," although specific details had not been disclosed. Currently, the retirement age for white-collar workers in China stands at 60 for men and 55 for women, a threshold that has remained unchanged for over four decades. By increasing this age requirement, China aims to slow down the rate of decline in its working-age population and create room for implementing policies to boost birth rates.
While the concept of raising the retirement age often faces resistance in many countries, the potential backlash in China also reflects broader concerns surrounding the country's employment landscape. This move underscores the government's proactive approach towards addressing the demographic challenges and economic implications of an aging population in the world's second-largest economy.