Through the years, the country’s retirement ages have stayed the same. One consequence has been the growing strain on the pension system as the workforce shrinks and payouts are made to more retirees.
Against this backdrop, China watchers have singled out the mention of raising the retirement age in the recently concluded third plenum, as a signal that Beijing is taking action to arrest the trend.
“In line with the principle of voluntary participation with appropriate flexibility, we will advance reform to gradually raise the statutory retirement age in a prudent and orderly manner,” stated the resolution document, without specifying any implementation details.
China has indicated a deadline, stating that all 300-odd reform tasks in the document should be completed by the time the People’s Republic of China marks its 80th anniversary in 2029.
While the document did not specify what the retirement age would be revised to, hints have previously emerged. A report published in December by the Chinese Academy of Social Sciences, a leading state-run think tank, estimated that everyone would eventually retire at 65.
Mr Huang Tianlei, research fellow and China programme coordinator at Peterson Institute for International Economics, told CNA it suggests the government is “making a compromise”.
“It’s basically letting people decide if they want to retire later. If they do decide to retire later, they will probably receive a higher pension; and if they decide to receive (the pension) on time or even early, they will get less,” he said.
“It’s to provide an incentive of sorts for people to retire a bit later.”
RILING UP THE YOUTHS
The plans have struck a nerve in the country – particularly among young people, with many expressing unhappiness online.
“Those who want to retire are those working in miserable conditions, and those who don’t want to retire are working in high-paying jobs while doing much less. How can young people live?” lamented one user on Chinese social media platform Weibo.
Another had concerns about job security. “As long as the government creates a good working environment for the ordinary people, we are all willing to work for a few more years, and earn our own keep without letting our children worry too much.
But the question is, can a person in his 50s or 60s find something to do in this era of involution?”
Ms Chen, the financial analyst, is similarly concerned, citing “challenging” prospects due to factors like the rapid advancements in artificial intelligence (AI) and the possible displacement of jobs.
She is mulling multiple backup plans instead of relying on one job.
“We have to adapt to change. I am thinking of starting first by investing and then upgrading my skills. Or I could take on a coaching role to help others pass the certified public accountant exams,” she told CNA.
Referring to the likelihood of later retirement, 24-year-old logistics supervisor Woody Zhu told CNA it feels like he is being served a “sentence”.
“I’d say even if it’s voluntary, maybe at most 10 per cent would actually do that on their own will,” he said.
Mr Zhu pointed out how many of his friends have turned to humour to channel their frustrations, and one way is through the sharing of memes on WeChat.
