Beijing, January 2, 2025 – The Europe Today: China’s first statutory retirement age reform in over 70 years took effect on Wednesday, marking a milestone in the country’s response to its aging population.
The reform, approved by lawmakers in September, will incrementally raise the retirement age for men from 60 to 63 over a 15-year period beginning January 1, 2025. Similarly, the retirement age for women cadres and blue-collar workers will increase from 55 to 58 and from 50 to 55, respectively.
Key Changes and Implementation
The reform introduces phased measures aimed at aligning retirement policies with demographic realities:
- Pension Contributions: Starting in 2030, the minimum years of pension contributions required to receive monthly benefits will rise from 15 to 20 years, increasing by six months annually.
- Voluntary Early Retirement: Eligible individuals can opt to retire up to three years earlier than the statutory age after meeting pension contribution requirements.
- Extended Retirement Options: Workers may delay retirement by up to three years through mutual agreement with employers.
Demographic Drivers of Reform
The decision is rooted in significant demographic shifts:
- Life Expectancy: China’s average life expectancy has reached 78.6 years.
- Aging Population: By the end of 2023, 297 million people aged 60 or above accounted for 21.1% of the population. This figure is projected to exceed 400 million by 2035, representing over 30% of the population.
- Workforce Decline: A shrinking working-age population has underscored the urgency of extending workforce participation.
Broader Policy Adjustments
To support the aging population and align with the reform, China has introduced complementary measures:
- Driver’s Licenses: The maximum age for applying for medium or heavy bus and truck driver’s licenses has been increased from 60 to 63.
- Elderly Care Initiatives: At a recent national civil affairs conference, officials emphasized advancements in home-based care, nursing facilities, and senior protection.
In 2024, the central government allocated 300 million yuan (approximately $41 million USD) to nationwide elderly meal assistance programs and established 358,000 in-home care beds.
A National Commitment to Aging Solutions
The reform reflects China’s proactive approach to addressing the socioeconomic impacts of an aging population while maintaining social stability and economic sustainability.
By implementing these measures, China is demonstrating its commitment to adapting to demographic changes and fostering long-term growth.
