China’s plan to bring change in the retirement age indicates that managing and caring for the rapidly ageing population has been a challenge for the State.
Author
Gunjan Singh, Associate Professor, O.P. Jindal Global University, Sonipat, Haryana, India.
Summary
For the first time since 1950s, China has implemented major changes to its retirement policy and is all set to increase the retirement age of its working population from January 1.
Under the new policy, the retirement age for men will be up from 60 to 63. For women, in white collar jobs it has been raised to 58 (from 55) and in blue collar jobs to 55 (from 50). According to Wang Xiaoping, minister of human resources and social security, “the adjustment is based on the current population structure, people’s improving health condition and the public’s concerns of a relative lack of flexibly in arranging their working and retiring lives”. The policy was approved by the Standing Committee of the 14th National People’s Congress.
In addition to late retirement, from 2030, the Chinese workforce will also have to make major contributions to their pension funds, and will have to do this mandatorily for 20 years to even access the pensions. They can also not retire before the set age limit.
Such actions were quite expected when China’s birth rate continued to decline for 2023 as well. China has been on the cusp of a demographic challenge and even after major urging by the Chinese Communist Party (CCP) and Xi Jinping, there has been no increase in the birth rates.
While addressing the All China Women’s Federation, Xi urged the women of China to “actively cultivate a new culture of marriage and childbearing and strengthen guidance on young people’s view on marriage, childbirth and family”.
Published in: Deccan Herald
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