China is ageing: first increase in retirement age since 1978

The legal retirement age in China will be gradually raised starting next year, for the first time since 1978. This was announced by the official China News agency.

The legal retirement age for men will be gradually moved to 63 from the current 60, and for women from 50 to 55, or 55 to 58, depending on the type of work. The increase will be spread over 15 years starting on 1 January 2025. According to analysts, China needs to act because the low retirement age and the falling birth rate are increasing the number of pensioners relative to the working-age population. Between 2023 and 2035, around 20 million Chinese will retire each year.

In 2023 China's population declined for the second consecutive year to 1.4 billion. The move comes as households are under pressure from slowing economic growth, a prolonged slump in the property sector and a weak labour market that is weighing on domestic consumption.

The new rules will allow employees to 'postpone retirement to an even later date if they reach an agreement with their employers,' China News added. Moreover, starting in 2030, the minimum number of years of work required to qualify for a retirement pension will be increased from 15 to 20 years, at a rate of six months more each year. The news sparked outrage among younger people, who complain that they have to work longer to support their elders.