China’s population is aging at an accelerated pace, with projections indicating that it will transition from an “aged society” to a “super-aged society” by 2032. This means that the proportion of individuals over the age of 65 will increase from 14% to more than 20% in just nine years. The rate of aging is unprecedented compared to other major countries like Japan, which took 11 years to undergo a similar transition, or Germany, which took 34 years. By comparison, South Korea is the only country expected to age more quickly than China. This demographic shift poses a significant challenge to China’s economy, particularly its pension system, which is struggling to support an ever-growing elderly population with a shrinking base of working-age citizens. The retirement age is a major lever the government can use to delay the impact of this demographic imbalance.
Retirement Age Adjustments
The central feature of China’s response is a phased increase in the retirement age. The current statutory retirement age is 60 for men and 55 for women, with an even lower threshold of 50 for women in blue-collar jobs. Starting in 2025, the retirement age will gradually rise to 63 for men and 58 for women by 2040. Blue-collar workers will also see their retirement age increase to 55. These changes are relatively modest compared to global standards, where the retirement age is closer to 64. Additionally, the minimum contribution period for obtaining a pension will increase from 15 to 20 years between 2030 and 2040.
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