CHINA began to adopt a flexible retirement system Wednesday, as part of its gradual increase of the statutory retirement age, Xinhua reported.

The newly introduced measures, unveiled on the first day of the new year, outline the procedures for applying for flexible retirement and the criteria for receiving basic pensions. In September, China’s top legislative body issued a resolution regarding the gradual increment of the statutory retirement age.

This marked the first modification since the 1950s, as the resolution indicated that effective from Jan. 1, 2025, the statutory retirement age for men would progressively elevate from 60 to 63 over a 15-year span. Similarly, the retirement age for white-collar women would rise from 55 to 58, and for blue-collar women, it would increase from 50 to 55.

“The retirement policy had been unchanged for a long time. After about 70 years, the Chinese population, economy and society a have undergone earth-shaking changes. The previous statutory retirement age no longer suits the current and future economic and social development needs,” said Yuan Xin, vice president of the China Population Association and a professor at Nankai University, as quoted by the Global Times.

As China tilts towards becoming a super-aged society in the next decade, the retirement reform aims to alleviate the strain on the shrinking workforce and optimize the utilization of the nation’s labor resources, said Li Chang’an, a professor at the University of International Business and Economics.

The new flexible retirement system is designed to provide a transition period until the uniform increase in retirement age takes effect, according to an official statement released Wednesday.

Individuals nearing retirement can negotiate with their employers for an earlier or later retirement timeframe, with a maximum extension of three years. Nevertheless, retirement before the previous age thresholds of 50, 55, and 60 for blue-collar women, white-collar women, and men respectively is prohibited.

Considering the relatively small number of individuals nearing immediate retirement compared to China’s workforce of 740 million, Li mentioned that the impact of the new policy on the job market would be limited. Li added that in many developed nations, the statutory retirement age is set at 65.

As per data from China’s health authorities in 2023, the average life expectancy in China has reached 78.6 years. A 2019 World Health Organization report indicated an average life expectancy of 77.4 years for the Chinese population, who were expected to live healthily up to 68.5 years on average.

(SD News)