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China on Friday announced plans to raise its retirement age for the first time since the 1950s, addressing its aging population and mounting pension crisis. The new policy, set to take effect in 2025, will gradually increase the retirement age for men and women over the next 15 years.
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Changes to expect: The country’s current retirement age — 60 for men across all jobs, 50 for women in blue-collar jobs and 55 for women in white-collar jobs — will increase gradually starting next year. By 2039, men will retire at 63, women in blue-collar jobs at 55 and women in white-collar jobs at 58. Many have voiced their frustration over the news, with one Weibo user writing, “In the next 10 years, there will be another bill that will delay retirement until we are 80.”
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Driving the news: China’s demographic challenges, including a shrinking workforce and a rapidly growing elderly population, have made the policy change inevitable. As the country’s life expectancy rises to 78.2 years, raising the retirement age may relieve pressure on its pension system. By 2040, nearly a third of the population will be over 60, putting a strain on its pension fund that is projected to run out by 2035. To complicate matters, China is dealing with a soaring youth unemployment rate, potentially making retirement more difficult. “Young people can’t find jobs, and the elderly aren’t allowed to retire,” another Weibo user lamented.
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