China increases retirement age for the first time since the 1950s.

China is set to "gradually raise" its retirement age for the first time since the 1950s in response to an aging population and a shrinking pension fund. The country’s top legislative body approved measures on Friday to increase the statutory retirement age for women in blue-collar jobs from 50 to 55, and for white-collar workers from 55 to 58. Men’s retirement age will rise from 60 to 63. Currently, China's retirement ages are among the lowest globally.

The changes will take effect on January 1, 2025, with incremental increases occurring every few months over the next 15 years, according to state media reports. Early retirement will not be permitted, although individuals can postpone their retirement by up to three years. Starting in 2030, workers will be required to contribute more to the social security system to qualify for pensions, and by 2039, they must have contributed for at least 20 years to access their pensions.

The Chinese Academy of Social Sciences warned in 2019 that the main state pension fund could deplete by 2035, a projection made before the economic impact of the COVID-19 pandemic. The decision to adjust retirement ages and pension policies was based on an assessment of average life expectancy, health conditions, demographic trends, education levels, and labor supply in China.

However, the announcement has sparked skepticism and discontent on Chinese social media. Some users expressed concerns that retirement ages could eventually be pushed to 80. Others lamented the challenges faced by middle-aged workers, including pay cuts and rising retirement ages, while unemployed individuals struggle to find jobs. Still, some users anticipated this change, noting that many European countries have higher retirement ages for men and women.

China's population has decreased for the second consecutive year in 2023, with a declining birth rate, while the average life expectancy has risen to 78.2 years. The World Health Organization estimates that by 2040, nearly a third of China's population—around 402 million people—will be over 60, up from 254 million in 2019.

China faces a demographic crisis, exacerbated by a slowing economy, reduced government benefits, and a decades-long one-child policy. The pension fund is running low, and the country is under pressure to create a sustainable financial framework to support its growing elderly population. Over the next decade, approximately 300 million people aged 50 to 60 will leave the workforce, a group nearly the size of the entire U.S. population. The question of how to care for them remains uncertain, varying based on different perspectives and regions.