China has announced interim measures to implement a more flexible retirement system, signaling a significant shift in the country’s approach to its aging workforce. Revealed on Wednesday, the measures are designed to gradually raise the statutory retirement age, providing a framework that balances individual choice with national economic needs.
According to the new guidelines, the retirement age for men will incrementally increase from 60 to 63 over a 15-year period starting January 1, 2025. For female employees, the retirement age will see a rise as well—female cadres will retire at 58 instead of 55, and female blue-collar workers will have their retirement age adjusted from 50 to 55.
The measures also outline changes to China’s pension system. Beginning in 2030, the minimum years required for basic pension contributions will gradually extend from 15 to 20 years, with an annual increase of six months. This adjustment aims to ensure the sustainability of the pension system amid demographic changes.
One of the key features of the new system is the introduction of flexibility. Individuals will have the option to retire up to three years earlier than the new statutory age, provided they have met the minimum pension contribution years. Conversely, those wishing to continue working can delay retirement by up to three years, pending agreement with their employers.
Zhang Yi, a professor at the School of Public Economics and Management of Shanghai University of Finance and Economics, highlighted the benefits of postponing retirement. “Our country’s pension structure includes the basic pension insurance system and private pension accounts. If people retire a year later, the average social salary will be higher, the payment period will be longer, and the pensions will be higher,” he explained.
The introduction of a flexible retirement system is seen as a move that empowers workers. “It gives people greater choice to decide their retirement time based on their own needs, willingness to work, physical conditions, family circumstances, and corporate needs,” Professor Zhang added.
The measures reflect China’s response to an aging population and a shrinking workforce. By allowing flexibility and gradually adjusting the retirement age, the country aims to balance the well-being of its citizens with economic vitality.
(With input from Xinhua)
Reference(s):
China unveils interim measures for flexible retirement system
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