China seeks to delay retirement to combat demographic problems

China seeks to delay retirement to combat demographic challenges China has recently announced plans to gradually increase the legal retirement age in the country, in an attempt to address the demographic challenges it faces due to rising life expectancy and declining birth rates. This reform has been deemed urgent as life expectancy in China has significantly increased in recent decades, reaching 78 years in 2021, surpassing even that of the United States. Currently, the retirement age in China is one of the lowest in the world, with men able to retire at 60 and women, depending on the type of work, at 55 or 50. These ages are notably below those of most developed economies, putting pressure on pension budgets in many Chinese provinces already facing deficits. The announcement of the reform was made public in a key policy document, which also outlined strategies to address the declining birth rate and aging population in China. The proposed reforms are expected to be implemented gradually and concluded by 2029, with the aim of adapting the retirement system to the country's new demographic reality. Chinese authorities have stated that the reform will be carried out on a voluntary participation basis with appropriate flexibility, allowing workers to choose whether they wish to extend their working lives. This measure is part of a broader effort to address the growing population of individuals over 60 in China, which is expected to exceed 400 million by 2035. The increase in the retirement age in China is seen as a necessary measure to ensure the sustainability of pension systems and to balance the proportion of active workers and retirees in the country's economy. The increasing longevity of the population has posed financial and social challenges that require urgent responses from the government. While the reform has been discussed in recent years, this is the first time that workers have been offered the option to extend their working lives beyond the current retirement age. This approach aims to provide citizens with the opportunity to continue contributing to the labor market while ensuring their financial stability in old age. Chinese authorities have recognized the need to adapt retirement policies to the country's new demographic reality, especially in light of projections of a significant increase in the elderly population in the coming decades. Managing this demographic transition challenge will require a comprehensive approach that addresses not only retirement age but also other aspects related to population aging. Through the implementation of these measures, China is proactively addressing the demographic challenges it faces, anticipating the economic and social consequences that could arise if action is not taken. The retirement system reform is just one of the many steps the country is taking to ensure a sustainable future for its population in the context of accelerated demographic changes.