China Raises Statutory Retirement Age to Address Population Aging

China has taken a significant step towards addressing its aging population by gradually raising the statutory retirement age. This is the first adjustment in over 70 years and reflects the country's proactive approach to managing demographic changes.

The new policy, which took effect on January 1, 2025, will see the retirement age for men gradually increase from 60 to 63 over a 15-year period. The retirement age for women will also be raised, with female cadres and blue-collar workers seeing their retirement age increase from 55 to 58 and from 50 to 55, respectively.

In addition to raising the retirement age, the new policy also increases the minimum number of years of basic pension contributions required to receive monthly benefits. This will gradually rise from 15 years to 20 years, starting in 2030.

The policy also allows for some flexibility in retirement decisions. Individuals can choose to retire up to three years earlier than the minimum contribution requirement, or they can postpone retirement by up to three years with their employer's agreement.

The decision to raise the retirement age is driven by several factors, including increased life expectancy, longer education periods, a deepening aging population, and a decline in the working-age population. China's average life expectancy has reached 78.6 years, and the country is officially classified as a moderately aging society. By 2035, the number of people aged 60 or above in China is projected to exceed 400 million, representing over 30% of the total population.

In line with the retirement reform and the overall demographic trend, China is making policy adjustments in various fields. The maximum age limit for applying for a medium or heavy bus or truck driver's license has been raised from 60 to 63. Additionally, the government is increasing its focus on elderly care initiatives, including boosting home-based care, nursing facilities, and protection for seniors.