Retirement age in China set for first increase since 1950s

WEB DESK: Chinese lawmakers have decided to slowly raise the retirement age, making the first change to the system since the 1950s, according to Xinhua news agency.

Starting in 2025, men’s retirement age will increase from 60 to 63 over 15 years. For women, it will rise from 55 to 58 for officials and from 50 to 55 for blue-collar workers.

From 2030, people will need to have contributed to their pension for at least 20 years to receive benefits, up from the current 15 years. This will happen gradually, with a six-month increase every year.

People can still retire up to three years earlier than the new required pension contribution years, but they can’t retire earlier than the old retirement age.

The new rules also allow workers to delay their retirement by up to three more years, if they and their employers agree.

The decision also includes plans to improve the pension system, protect workers’ rights after retirement, and improve elderly and childcare services. Special measures are in place for workers in certain jobs who may retire earlier.

This plan was based on factors like life expectancy, health, population structure, education, and workforce supply in China. It was discussed at major Communist Party meetings before being approved by lawmakers.

Read next: Weekly exchange rate summary: PKR fluctuates modestly