Raising the retirement age is never popular, particularly for a country that is getting old before it gets rich
No one should be surprised that China is raising its retirement ages. They are currently among the lowest in the world and haven’t shifted for decades, even as lifespans have lengthened dramatically. Women currently retire as early as 50 and men at 60, while life expectancy is around 78 – up from 44 in 1960. Now the male retirement age is to rise to 63, while women’s will rise to 55 (for blue-collar workers) and 58 (for white-collar employees). These changes will be phased in over the next 15 years. Employees will also have to make more contributions from 2030.
China is far from alone in facing the problem of too many old people and too few young workers to support them. But unlike western nations, it is getting old before it has got rich. The scale of the challenge and the speed at which it is arriving are extraordinary, thanks in large part to the decades of birth restrictions known as the one-child policy. It also means that fewer retirees are able to count on their kids supporting them.
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