- Islamabad, Sep 14: China Raises Retirement Age for the First Time in Over 50 Years Amid Population Decline
According to Xinhua News Agency, to postpone staff retirement for up to five years. Men will no longer retire at 60, but at 63. For women in regular employment, the retirement age will be 55 instead of 50, and for those in managerial roles, it will be 58 instead of 55.
More people will be able to work longer thanks to the change, which will take effect in January and last for 15 years. This might increase productivity to help with the problems brought on by an aging population, but it also runs the danger of making people irater that the economy is expanding at the slowest rate in five quarters.
“The timeline of raising the retirement age is pretty gradual. Policymakers probably have taken into account the potential negative impact and calibrated that carefully,” said Michelle Lam, Greater China economist at Societe Generale SA.
China Rises retirement age is among the world’s lowest despite significantly increased life expectancy over the decades. A bigger tax base and delayed access to benefits will relieve the pressure on the government to fund pensions as the elderly population rapidly expands.
