China Plans Retirement Age Increase to Address Pension Crisis

China is set to raise its retirement age over the next 15 years, adjusting the age for men from 60 to 63 and for women from 55 to 58 in white-collar jobs and 50 to 55 in blue-collar jobs. This reform addresses significant pension deficits and a declining workforce exacerbated by the legacy of the one-child policy, with birth rates dropping to 9 million last year and projections indicating a 40% decline in the working-age population by 2050. Economists stress the urgency of these changes as China's economic growth slows, with rates expected to drop to as low as 1% by 2035. However, the policy has faced criticism for skipping public consultation and raises concerns among workers about job availability and financial stability. China's pension system is under severe pressure, with many provincial jurisdictions already running deficits, raising fears that the system could deplete its funds by 2035. Premier Li Qiang has described the reform as vital for improving social security and protecting livelihoods, but widespread disparities between urban and rural pensions remain a challenge.