Starting in 2025, China will raise its retirement age. Currently, Chinese citizens may retire younger than most workers in the world’s major economies. But with an aging work force and fewer young folks, China needs everyone to work longer.
The current retirement age in China is 60 for men and 50 for women in blue-collar labor jobs. Those limits have been around since the 1950s.
The new retirement age will rise to 63 years for men and 55 or 58 years for women, depending on their jobs.
“We have more people coming into the retirement age, and so the pension fund is [facing] high pressure. That’s why I think it’s now time to act seriously,” says researcher Xiujian Peng, who studies links between China’s population and economy.
China’s legislature says the age increase will happen gradually over 15 years and will be based on people’s birthdates.
Experts say China’s elderly population has exploded. By the end of 2023, China tallied nearly 300 million people over age 60. Some say that figure could reach 400 million by 2035—more than the entire population of America!
Chinese officials insist the change is long overdue. The Chinese Academy of Social Sciences projects the public pension fund—monies that support the elderly—could run out by 2035.
Pressure on social benefits isn’t unique to China. The United States faces the same issue. Analysts say the U.S. Social Security fund won’t be able to pay out full benefits by 2033.
“This is happening everywhere,” says global health expert Yanzhong Huang. “But in China with its large elderly population, the challenge is much larger.”
China is seeing fewer births too. In 2022, China’s National Bureau of Statistics reported a turnaround—from population growth to decline. In 2023, the population shrank further. That means a smaller workforce in the future to help support the elderly.
Some couples say they don’t want children. It’s sad to think of purposely skipping out on that blessing. Psalm 127 calls children a heritage and a blessing from the Lord. (verse 3)
What do China’s population changes mean for the economy? For one, it means funding elderly people’s pensions with deductions from fewer young workers. That places a heavy tax burden on young folks.
China’s government is touting the new plan. But journalists say thousands of comments on a news post announcing the policy are not visible. They suggest censored comments are likely negative ones.
Li Bin, 35, works in the event planning industry. She admits being a bit sad about the change.
“It’s three years less of play time,” she says. “I had originally planned to travel around after retirement.”
She has about 20 years to come up with a new plan.
Why? Human plans often don’t work out the way people intend. God’s way is perfect. He knows the plans He has for us—plans “for a future and a hope.” (Jeremiah 29:11)
