China to raise retirement age for first time since 1978which will mean that men will be able to stop working at 63, compared to the current 60, and that the minimum age for women who perform physical and qualified work will rise from 50 to 55 and from 55 to 58 years, respectively.
The increase, which will be implemented over the next 15 years starting in 2025, was approved on Friday by the permanent committee of the People’s Congress of China, according to the state news agency ‘Xinhua‘.
In addition, from 2030, The minimum contribution age to qualify for a pension will gradually increase from 15 to 20 yearsat a rate of six months per fiscal year.
During the transition period, people will be allowed to retire voluntarily up to three years before reaching the minimum contribution age. However, retirement before the previous statutory age will not be allowed.
The legislative amendment will also allow workers to postpone their retirement if they reach an agreement with their employers, but the extension must not exceed three years.
The incentive mechanism for old-age insurance, the national ‘first job’ plan, and theThe rights of workers who have exceeded the legal retirement ageas well as services for the care of the elderly and child care.
The document also includes specific provisions concerning the elderly unemployed and early retirement for those who exercise certain types of professions considered special.
Retirement age is set to rise to 67 by 2029.
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China to Raise Retirement Age for First Time Since 1978: What You Need to Know
In a significant move, China has announced plans to raise its retirement age for the first time since 1978. The decision, approved by the permanent committee of the People’s Congress of China, will see men’s retirement age increase to 63 from the current 60, while women’s retirement age will rise to 55 and 58 for physical and qualified workers, respectively. This change is set to be implemented over the next 15 years, starting in 2025.
Why Raise the Retirement Age?
The decision to raise the retirement age is largely driven by China’s rapidly aging population and the need to ensure the long-term sustainability of the country’s pension system. With a declining workforce and increasing life expectancy, China’s pension fund has been facing significant pressure. By increasing the retirement age, the government hopes to reduce the burden on the pension system and provide a more stable source of income for retirees.
Key Changes to the Retirement Age
The changes to the retirement age will be implemented gradually over the next 15 years. Here are the key changes:
Men’s retirement age will increase to 63, up from the current 60.
Women’s retirement age will rise to 55 for physical workers and 58 for qualified workers, up from the current 50 and 55, respectively.
* From 2030, the minimum contribution age to qualify for a pension will gradually increase from 15 to 20 years, at a rate of six months per fiscal year.
Transition Period and Voluntary Retirement
During the transition period, people will be allowed to retire voluntarily up to three years before reaching the minimum contribution age. However, retiring before the previously scheduled retirement age will not be permitted.
Impact on China’s Workforce and Economy
The changes to the retirement age are expected to have significant implications for China’s workforce and economy. With a larger workforce and more experienced workers remaining in the workforce, China’s economy is likely to benefit from the increased productivity and expertise. However, the changes may also lead to a more competitive job market, with older workers potentially competing with younger workers for jobs.
Comparison to Other Countries
China’s decision to raise the retirement age is not unique. Many countries around the world have implemented similar changes to their pension systems in response to aging populations and budget pressures. In the United States, for example, the full retirement age is increasing gradually to 67, while in Germany, the
– What are the reasons behind China’s decision to raise the retirement age?
China Raises Retirement Age for the First Time Since 1978: A Shift Towards a Sustainable Pension System
In a significant move, China has increased its retirement age for the first time since 1978, aiming to address the challenges posed by an aging population and ensure the long-term sustainability of its pension system. The decision, approved by the permanent committee of the People’s Congress of China, will see men’s retirement age rise from 60 to 63, while women’s retirement age will increase from 50 to 55 for those engaged in physical labor and from 55 to 58 for those in qualified work.
A Gradual Implementation
The new retirement age will be implemented over the next 15 years, starting in 2025. This gradual approach is designed to minimize disruptions to the labor market and allow workers to adjust to the changes. During this transition period, people will be allowed to retire voluntarily up to three years before reaching the minimum contribution age. However, retirement before the previous statutory age will not be permitted.
Increased Contribution Period
In addition to raising the retirement age, the legislative amendment will also increase the minimum contribution age to qualify for a pension from 15 to 20 years. This change will be implemented at a rate of six months per fiscal year, starting from 2030. The move is intended to encourage workers to contribute to the pension system for a longer period, ensuring a more sustainable source of funding
