Retirement Age: India’s neighboring country, China, has decided to gradually increase the retirement age of employees. While male employees retire at age 63, women will have to serve until age 58. This decision by China is considered significant for the benefit of the employees. Previously, women’s retirement age was 55 years, while men’s was 60 years.
In urban areas, men could retire at the age of 60. In order to address China’s declining workforce, weakening economy, and lack of pension funds for senior citizens, there is also a plan to increase the working period.
By 2030, the government plans to increase the minimum tenure required for pensions from 15 years to 20 years. However, there has been significant opposition on social media to these proposed changes. Citizens believe that this will increase their working period and delay pension, while youth unemployment in the country is already at a high level. China’s growing elderly population is another big concern.
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A big update regarding China
Currently, it makes up about 20% of the population, but projections indicate that it will rise to 30% by 2030–2035 and 40% by 2050. The Chinese Academy of Social Sciences warned in 2019 that state pension funds could run out by 2035. Moreover, the epidemic is leading to a decline in the workforce and the potential exhaustion of local government funds.
The employment market situation also remains challenging. In July, the unemployment rate of youth aged 16-24 years was 17.1 percent, while the unemployment rate of youth aged 25-29 years was 6.5 percent. There is also an increase in complaints of age discrimination in jobs for people over the age of 35. Last year, elderly citizens in several big cities protested against cuts in their medical benefits, where they feared that the government was pressuring them to meet the shortage of pension funds.
The Chinese government is planning to raise the retirement age and extend the working period for pensions to cope with demographic and economic challenges. However, this decision has led to discontent and anxiety among citizens as they are worried about their financial and employment security.
