China to raise its retirement age for the first time in decades

• China will raise its retirement age to address a declining population and shrinking workforce.
• The new retirement age will be 63 for men and between 55 and 58 for women.

China will gradually raise its retirement age in response to an aging population, shrinking workforce, and to relieve pressure on its pension system.

Chinese state media said Friday that the country's top lawmakers approved a proposal to delay the age at which people stop working.

Under the plan, men's retirement age in the country will rise to 63 from 60. While women in blue-collar jobs will see their retirement age increase from 50 to 55 and 55 to 58 for women in white-collar positions. This change will occur over the next 15 years, beginning in January 2025.

From 2030, workers will also have to contribute to their pension accounts for longer before receiving their monthly retirement benefits. This will gradually go from 15 to 20 years.

Raising the retirement age and delaying these benefits could help relieve the strain on the Chinese pension system.

China has been grappling with a retirement crisis as more older workers discover they cannot afford to leave their jobs.

According to data from the OECD, previously cited by Reuters, of the 734 million working in China, 94 million, or 13%, are over 60.

The proportion of older people in the workforce is expected to grow, with officials estimating 300 million workers will reach the age for leaving work over the next ten years, according to OECD data. This is close to the entire US population.

At the same time, China has also been grappling with high youth unemployment as economic growth slows.