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The country wants you to “voluntarily and flexibly delay retirement”? Social anxiety caused by China’s “65-year-old retirement” statement
“Delayed retirement” has emerged as a hot topic in China lately. The Third Plenary Session of the CPC Central Committee released a report on July 21 that stated, “Following the principles of voluntariness and flexibility, we will steadily and orderly advance the reform for gradually increasing the statutory retirement age.” While the CCP did not provide detailed instructions, the online discourse has suggested that it implies a “retirement age of 65,” which has sparked considerable discussion. China currently faces challenges stemming from an aging population and a declining birthrate, alongside pressures of high youth unemployment and low employment rates. The vague details surrounding the reform have led to public skepticism.
The “delayed retirement” concept arose from the “Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reforms and Promoting Chinese-style Modernization,” issued by the Third Plenary Session on July 21. Article 46 within the document pertains to “Establishing a Sound Population Development Support and Service System” and states, “In response to the aging population, improve the policy mechanisms for developing senior care and care industries. Develop the silver economy and create diverse, personalized job opportunities suitable for the elderly. In accordance with the principles of voluntariness and flexibility, we will steadily and orderly advance the reform for gradually delaying the statutory retirement age.”
The phrases “diversified and personalized job positions suitable for the elderly” and “according to the principle of voluntariness and flexibility” are quite vague. The authorities did not elaborate further on the specifics, leading to interpretations suggesting the government is gauging public opinion regarding retirement age adjustments. The inclusion of “voluntariness and flexibility” marks the first time this has been explicitly stated in relation to delaying retirement age, however, it has caused confusion and varied interpretations.
Subsequently, a “Delayed Retirement Policy Age Calculation Deduction Table from 2025 to 2055” circulated in Chinese online communities. Many self-media accounts claimed that “both men and women born in the 1990s must retire after the age of 65,” which intensified the discussion around the notion of “retiring at 65.”
In actuality, the Chinese authorities have not officially stated “retirement at 65.” The media outlet “The Paper” highlighted that the deduction information originated from a personal WeChat account named “Voice of Supervision” and lacks official endorsement. This report clarified that the deduction table was created by netizens based on predictions from various experts, who suggested that the retirement age may be progressively delayed a few months each year until it reaches 65 – but this was merely for reference. Nonetheless, the figure “65” has spread widely, leading to complaints and dissatisfaction among many Chinese netizens.
“Age Calculation and Derivation of Delayed Retirement Policy from 2025 to 2055” by the Chinese Internet Community.
Some Chinese netizens expressed, “In the past couple of days, many people have shared news about #delayedretirement, claiming it would be too painful to work until the age of 65. This is not accurate. Everyone has misunderstood. Delayed retirement means that pensions will only be available at 65, but this does not imply that everyone must continue working until that age.”
Others sarcastically remarked that employees over 35 have been more likely to face layoffs in recent years, joking, “You get ‘optimized’ at 35 (China’s euphemism for being laid off), yet you can retire at 65. What about the intervening thirty years? Will we just survive in the wilderness?” (Reference reading:〈China’s “35-year-old crisis”: Losing competitiveness and getting laid off early? The weak generation that squeezes and consumes>）
Some believe that delaying retirement until the age of 65 will lead to an aging workforce. Consequently, netizens humorously predicted that future annual company awards might include “consolation prize diapers, third prize oximeters and blood pressure monitors, second prize senior calcium supplements, first prize hearing aids, and a special prize electric wheelchair.” One netizen quipped, “At 62, I forgot where my company was and got sent home by the police; my perfect attendance award is gone.” Amidst the humor and complaints from netizens, along with dissatisfaction about the concept of delayed retirement, there is a deeper anxiety regarding current employment conditions.
The current retirement system in China stems from regulations implemented by the State Council in the 1970s: men retire at 60, women designated as white-collar workers retire at 55, and other female workers at 50. There are provisions for core personnel in education, health, and technology to extend retirement by 1 to 5 years. Despite this, the retirement age has remained unchanged until now. China’s retirement age is lower compared to some developed countries (for example, the retirement age in the United States is 65, and Germany is gradually raising it to 67).
Some netizens also said: “At the age of 62, I forgot where the company was. I was sent home by the police and my perfect attendance award was lost.” They joked that…
Nevertheless, China also faces increasingly severe challenges with an aging population, declining birthrate, and pension issues. As one of the countries experiencing the most serious aging problems globally, official statistics show that the average life expectancy in China rose from 44 years in 1960 to 78 years in 2021, and is projected to exceed 80 years by 2050.
According to official data, there are 379.25 million workers enrolled in basic pension insurance (social security) for urban employees in China, compared to 141.96 million retirees. This indicates that 2.67 working individuals must support one retiree. The declining birthrate in China is anticipated to continue as a long-term trend, presenting significant challenges related to ballooning pension costs and complex long-term care issues.
Concurrently, social employment pressures are high, with increasing youth unemployment rates. Numerous real situations exist, such as “you can’t find a job if you are over 35,” and “if you have a one-year employment gap, you might as well tell HR you were jailed.” Challenges in the job market have driven more young people to choose to “lie down” or “gnaw at old age.” Although the proposal for delaying the retirement age to 65 lacks an official source, it has nonetheless generated heightened anxiety among many Chinese netizens. A Weibo user noted:
“# Retirement# I think too much. Pension benefits begin at 65, but that doesn’t mean your employer will still want you at that age. After all, the mid-life crisis kicks in at 35. Recently, numerous companies have been laying off employees, particularly those in their forties who have worked for years. As you reach middle age, you’ll face layoffs, and no company will want you.”
Various real workplace difficulties have led more young people to choose to lie down or “gnaw at old age,” and postpone the retirement age to 65… past 24 hours China
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The Country Wants You to “Voluntarily and Flexibly Delay Retirement”? Social Anxiety Caused by China’s “65-Year-Old Retirement” Statement
Published on: July 26, 2024 – by Lianhe News Network
Understanding the Background of Delayed Retirement in China
The topic of “delayed retirement” has been a burning issue in China recently, with a significant focus on the implications of potentially raising the retirement age to 65 years. The Third Plenary Session of the Communist Party of China (CPC) issued a report on July 21, marking a considerable step towards reform. It stated that the government would “steadily and orderly advance the reform of progressively delaying the statutory retirement age” based on voluntary and flexible principles.
Population Aging: The Driving Force Behind Retirement Reform
China is facing a demographic shift characterized by an aging population and low birth rates. According to government statistics, the average life expectancy has risen from 44 years in 1960 to 78 years in 2021. Projections for 2050 suggest it will exceed 80 years. As a result, the need to reassess retirement policies has become more pressing, especially given the ratio of workers to retirees. Currently, approximately 2.67 working individuals support one retired person.
Current Retirement Age Regulations
China’s retirement age is notably lower than that of many developed countries. The existing system, established in the 1970s, allows men to retire at 60 years, while women can retire at 55 (for white-collar workers) and 50 (for blue-collar workers), with some exceptions for core sectors like education and healthcare. This framework is increasingly untenable given current socio-economic challenges.
Online Reaction and Criticism of Delayed Retirement
The introduction of the concept of voluntarily delaying retirement has sparked significant public discourse on social media. Many people have expressed anxiety regarding the prospect of having to work until the age of 65. Various interpretations circulating online, including an unofficial “Age Calculation Deduction Table for Delayed Retirement from 2025 to 2055,” have further inflamed the situation.
Vague Terminology and Public Misunderstandings
The CPC’s mention of “voluntariness and flexibility” lacks clarity and has led to confusion. Netizens have circulated interpretations suggesting mandatory retirement at 65, even though no official statements confirm this. The online discourse has moved quickly, with many people fearing aging in the workplace and the potential challenges of remaining employed until an advanced age.
Analyzing Job Market Pressures
China currently grapples with high youth unemployment, compounded by a pervasive belief that workers begin to lose their competitiveness as they age. Public sentiment often reflects a sense of resignation, with many young workers feeling marginalized in a labor market that frequently overlooks those aged over 35. This job market reality fuels the anxiety surrounding delayed retirement, making older workers feel further alienated.
The Impact of Aging Workforce on Employment Opportunities
Some netizens humorously noted the possible implications of an aging workforce, speculating on the type of rewards awarded at company functions in the future. Jokes flew about “consolation prize diapers” and “hearing aids” becoming common accolades, symbolizing fears about the adequacy of employment for older employees. Still, the deeper anxiety reflects a restless job market, rife with layoffs and daunting prospects for middle-aged workers.
Benefits of Longer Working Years
While public concerns around delayed retirement dominate discussions, certain benefits warrant consideration:
- Increased Financial Security: Prolonged employment can enhance personal savings and pension payouts, offering more significant financial stability in retirement.
- Utilization of Experience: Older employees bring valuable experience and skills to organizations, which can lead to more effective job performance and mentoring opportunities.
- Boosting the Economy: By delaying retirement, the workforce remains larger, contributing to economic productivity and sustainability.
Practical Tips for Adapting to Delayed Retirement
For individuals facing the potential of delayed retirement, here are some practical strategies:
- Upskill: Invest in learning new skills or advancing existing ones through workshops or online courses to enhance employability.
- Networking: Build and maintain professional relationships that could lead to job opportunities or collaborations later in life.
- Financial Planning: Consult financial advisors to prepare for potential changes in retirement savings strategies.
Challenges Within the Current System
The pressures of an aging population do not only relate to retirement age changes but also complicate the entire pension system. Without additional young professionals entering the workforce, the sustainability of the current pension model is at risk. Data shows that there are considerably more retirees than the percentage of working-age individuals contributing to pensions.
Addressing the Needs of the Elderly
Part of the anticipated reforms includes developing a “silver economy” that accords better elder care and new job opportunities for senior citizens. These measures intend to create a supportive framework that accommodates the aging workforce while also addressing the broader needs of society in caring for an increasingly mature population.
Conclusion and Future Directions
In conclusion, the discourse around delayed retirement in China underscores significant anxieties and challenges. Understanding the ramifications of such policies is crucial for all stakeholders involved. While the official stance lacks detailed clarity, public opinion will undoubtedly shape the final structure of these reforms. Addressing the concerns surrounding workplace ageism and creating supportive policies will be integral to ensuring both older workers and the economy flourish.
