Retirement age will rise rapidly to 2030 in China

Significance

While the move is economically sound, there are sensitive political and social implications. Some workers will welcome working for longer. However, there is resistance to such major change. Stakeholders in the Chinese economy will need to plan for resulting challenges but also opportunities.

Impacts

• Workers will resist change, with most reluctant to delay retirement voluntarily.
• The central government will probably have to introduce compulsory measures, most likely during the next Five-Year Plan (2026-30).
• Companies that employ women to do manual work will be impacted significantly as the retirement age rises from 50 to 65.
• Social and family structures will be affected as grandparents who retire later will no longer be able to look after grandchildren.
• Raising the retirement ages will provide temporary relief for the pension funds to manage and restructure.