Fatshimetrie recently reported on striking footage of demonstrations in China, where citizens were vigorously protesting planned changes to the retirement age. This announcement by the Chinese government to raise the retirement age has triggered a wave of discontent and concern among the population concerned.
Currently, in China, men in urban areas can retire at age 60 and receive a pension from state-supported funds, while the retirement age of working women varies between 50 and 55 depending on of their profession. Rural residents, on the other hand, are subject to a different pension system.
As China faces a declining birth rate and an aging population, the government has been exploring the possibility of increasing the retirement age for more than a decade. The recently announced reforms follow discussions that began at China’s Third Plenum, a major political meeting held every five years in Beijing.
Reports indicate that the planned changes could lead to everyone retiring at the age of 65 in the future. The move was prompted by the alarming prospect of state pension funds being depleted by 2035, due to the decline in the working population. The economic fallout from the Covid-19 pandemic has exacerbated this crisis, forcing local governments to dip into individual accounts to make up for pension fund deficits.
This announcement sparked strong reactions on social networks, where many citizens expressed their dissatisfaction with the prospect of delaying their access to retirement. Young people also expressed concerns about reduced job opportunities if older workers stay in the job market longer.
The deterioration of the economy and the loss of jobs in key sectors have also contributed to the rise in social tensions. Rising youth unemployment, combined with a shortage of quality jobs, risks worsening China’s demographic crisis.
As the Chinese government attempts to boost the birth rate and revive the economy, reforms related to the retirement age pose new social and economic challenges. It is therefore crucial for policymakers to strike a balance between the financial security of current retirees and the opening of employment prospects for future generations.