China approves plan to raise retirement age

According to a decision by the Standing Committee of the National People's Congress (the Chinese National People's Congress), the retirement age for men will increase from 60 to 63 years old, and for female office workers from 55 to 58 years old. For women doing manual work, the retirement age will be adjusted from 50 to 55 years old.

Illustration photo: Reuters

China's old retirement age is much lower than that of most developed economies. In Japan, people can only start receiving pensions at 65, while in South Korea, the retirement age is 63.

China has been considering raising the retirement age for years, and local governments are now facing pension budget deficits. The Chinese Academy of Sciences has warned that on current trends, the pension system will run out of money by 2035.

The plan could also help the economy by countering the effects of a shrinking workforce.

According to the latest census figures, the number of people of working age, those aged 16 to 59, has fallen by 40 million in just over a decade, to 879 million in 2020.

The low birth rate also means the overall population is shrinking. According to United Nations data, China's population is expected to fall to 1.3 billion by 2050 and then drop below 800 million by 2100.

Mo Rong, director of the China Academy of Labor and Social Security, told the People's Daily, the mouthpiece of the Chinese Communist Party, that the decision was an "inevitable choice" that would help the country "adapt to the new population norm."

Hoai Phuong (according to SCMP)

Source: https://www.congluan.vn/trung-quoc-phe-duyet-ke-hoach-tang-tuoi-nghi-huu-post312220.html