Explainer: Outrage in China over retirement age reform

China is facing significant

demographic challenges

as its population ages rapidly and birth rates decline. In response, the Chinese government has announced plans to raise the statutory retirement age, which is currently among the lowest in the world. This reform aims to address the financial pressures on the country's

pension system

and ensure its sustainability in the face of an increasing elderly population.

Currently, men in urban areas can retire at 60, while female urban workers can retire at 50 or 55, depending on their occupation. Rural residents have a different retirement system.
The announcement has generated a fierce backlash among the Chinese populace. Many young people are concerned that extending the working age will exacerbate

youth unemployment

, while older workers fear that they will be forced to work longer without adequate pension benefits. Social media platforms have seen a surge of criticism, reflecting widespread discontent with the proposed changes. Despite these concerns, the government insists that the reform is necessary to cope with demographic pressures and maintain

economic stability

.
Why is China raising the retirement age?
China is raising the retirement age to address its rapidly aging population and declining birth rates. The country faces a demographic crisis with a growing number of elderly citizens and a shrinking workforce. This policy aims to ensure the sustainability of the pension system, which is under strain due to an increasing elderly demographic. Without reforms, the pension system could be depleted by 2035.

What are the current retirement ages in China?
Currently, men in urban areas can retire at 60, while female urban workers retire at 50 or 55 depending on their occupation. These retirement ages are among the lowest in the developed world.
What changes are being proposed?
China’s ruling Communist Party has announced plans to progressively delay the statutory retirement age. While specific details have not been released, a December report by the Chinese Academy of Social Sciences estimated that eventually everyone will retire at 65. The reforms are expected to be completed by 2029.

How has the public reacted to these changes?
The proposal has sparked significant public discontent. Many young people fear that extending the working age will exacerbate youth unemployment. There is also anger over perceived inequality in pension benefits between blue-collar and white-collar workers. Skepticism about the social insurance system's ability to deliver promised benefits has further fueled the backlash. On social media platforms like Weibo and Xiaohongshu, users have expressed their frustrations, with some discussions reportedly being suppressed.
What are the main reasons behind the public backlash?
Job market concerns: Young people are worried that keeping older workers employed longer will limit their job opportunities. As one Weibo user commented, “Young people have a hard time finding jobs, but elderly people are not allowed to retire. What are you doing?”
Inequality in benefits: Blue-collar workers, especially migrant laborers, often receive much lower pensions compared to their white-collar counterparts. This disparity has led to feelings of injustice and resentment. A popular comment on social media stated, “Delaying retirement age only means you can’t receive a pension until very late. It doesn’t guarantee you would still have a job before that!”
Distrust in the system: Many workers express skepticism about the pension system's ability to deliver promised benefits. Concerns about losing benefits if forced to work longer contribute to the backlash against the retirement age increase. One Xiaohongshu user commented, “Delaying retirement age on a ‘voluntary basis’? Just like the elder generation was ‘voluntarily’ forced to have only one child or laid off from state enterprises?”
Censorship of criticism: The government has reportedly suppressed some online criticism of the policy, indicating a sensitivity around the topic and further fueling public anger.
What impact could this reform have on China's economy?
Policymakers believe that older workers can contribute positively to the economy due to their valuable experience. The government argues that older individuals have stronger purchasing power, which can stimulate economic growth. Additionally, by alleviating financial pressures on the pension fund, the state aims to maintain economic stability. However, the reform could also deepen issues like youth unemployment and inequality, potentially affecting social cohesion and economic performance.
What other measures is China taking to address its demographic challenges?
China has relaxed its limit on the number of children allowed per couple and launched national campaigns encouraging families to have more children. Financial incentives have also been offered to boost the birth rate. Despite these efforts, Chinese people's willingness to have children remains among the lowest in the world, and the population has been shrinking for the past two years.
(With inputs from agencies)