China seeks to delay retirement to address demographic challenges

China seeks to delay retirement to combat demographic issues In an attempt to address the demographic challenges posed by the aging of its population, China has announced plans to gradually increase the legal retirement age in the country. This reform is presented as a necessary and urgent measure, considering that life expectancy in China has experienced a significant increase in recent decades, reaching 78 years in 2021 and surpassing that of the United States. Currently, the retirement age in China is one of the lowest globally, set at 60 years for men, while for women it varies depending on the type of work performed. This situation has put pressure on pension budgets in many provinces, some of which are already facing deficits in this regard. The announcement of the proposal to delay retirement was made in a relevant political document that also addresses strategies to cope with the declining birth rate and the aging population in China. The latter aspect has been manifested in a reduction in the population for the second consecutive year in 2023, a trend expected to continue in the coming decades. Chinese authorities have stated that the reform will be carried out under the principle of voluntary participation with due flexibility, allowing individuals to extend their careers for longer if they wish. It is expected that the proposed reforms will be implemented gradually and concluded by 2029. According to projections from national health authorities, the population of people over 60 years old in China is expected to increase significantly from 280 million to over 400 million by the year 2035. These numbers represent an impressive figure, equivalent to the combined population of the United Kingdom and the United States today. This initiative to delay retirement in China marks a significant change in the country's labor policy and reflects the need to adapt to an aging population and a changing demographic landscape. While there have been previous discussions about raising the retirement age, this proposal would allow workers for the first time to choose to extend their working years, which could have implications for both the pension system and the workforce in general. In summary, China is facing an evolving demographic scenario that requires concrete actions to ensure the sustainability of its pension system and economic stability in the future. The proposed retirement delay reform is an important step in this regard, although it remains to be seen how it will be implemented and what its long-term effects will be on Chinese society.