Elderly Population Reaches 300 Million... Is Aging China Considering Retirement Age Extension?

Elderly people watching a performance in a rural village in Shandong Province, China.
Photo by Yonhap News

[Asia Economy Reporter Choi Eun-young] China is reportedly considering raising the retirement age.

On the 27th, according to state media China Daily, You Jun (游鈞), Vice Minister of the Ministry of Human Resources and Social Security of China, stated at a State Council press conference the previous day, "We are studying specific reform plans related to raising the retirement age."

Vice Minister You Jun said, "The gradual increase of the retirement age is a major decision in line with China's economic and social development," adding, "Considering the rise in life expectancy, changes in population structure, and labor supply and demand, the current retirement age is relatively low. Extending the retirement age is a universal method adopted by countries to cope with aging."

Currently, the retirement age in China is set at 60 for men, and for women, it is either 55 or 50 depending on the industry. This standard was established in the 1950s, and the current government plans to set a new retirement age after gathering opinions from various sectors.

Previously, China projected that the elderly population would exceed 300 million during the 14th Five-Year Plan period (2021?2025). In response, Chinese leadership has stated that the retirement age should be gradually increased.

Meanwhile, China is struggling with youth employment difficulties. Hong Kong media South China Morning Post (SCMP) reported that there is a shortage of jobs for young people in China, forecasting that about 15 million new job seekers, including university graduates, will enter the job market this year, but it will be difficult for all of them to find employment.

SCMP predicted that due to the impact of COVID-19, millions of university graduates last year were unable to find jobs or had to take positions in delivery services, so competition for employment is expected to become even fiercer this year.