Senior Chinese officials said that plans to raise the retirement age in a phased manner will be a proactive measure to address the challenge of the nation's aging population, and are vital to sustainable social development by making full use of human resources.
You Jun, vice-minister of human resources and social security, said at a news conference in late February that raising the retirement age takes into consideration the current average life expectancy, the increasing aging population, and a labor force shortage.
The statutory retirement age, according to a regulation by the State Council, varies under different circumstances, but is generally 60 years old for men and 55 for women working in administrative positions
"The statutory retirement age for men is 60 years old, and 55 for women, but female workers can retire at age 50. The regulation was launched allowing for the circumstances at the founding of the People's Republic of China (in 1949), but have not been adapted to current situations," he said.
The statutory retirement age, according to a regulation by the State Council, varies under different circumstances, but is generally 60 years old for men and 55 for women working in administrative positions. Women in jobs that require strength can apply for retirement at 50.
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The vice-minister added at the news conference that in the 1940s, the average life expectancy was around 40, but it increased to 77.3 by 2019. Life expectancy is higher in urban areas, where people can live to 80 on average.
"The increasing aging population is another driving element," he said.
"By the end of 2019, people older than 60 accounted for 18.1 percent of the total population", he said, or about 253 million people. "The number of elderly people will exceed 300 million during the 14th Five-Year Plan (2021-25) period, which will fundamentally influence social development."
The labor force shortfall also is prompting authorities to consider raising the retirement age. Data from the Ministry of Human Resources and Social Security shows that the nation's labor force began to decline in 2012, with a decrease of 3 million per year on average since. It is projected to be reduced by an additional 35 million from 2021 to 2025.
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Significant advantage
The vice-minister said that raising the statutory retirement age will also help better use human resources. "In those newly added to the labor force, over half received higher education, spending 13.7 years in school on average so far," he said.
The longer time spent in school postpones people's entry to the job market until they are older, and this reduces the full use of human resources if the retirement age remains unchanged, You said.
The government has made headway on the issue before.
Early in 2012, the central government proposed raising the retirement age. The Ministry of Human Resources and Social Security then advised in the 13th Five-Year Plan (2016-20) that a specific program to raise the retirement age would be introduced in a phased manner, which is scheduled to come into effect this year.
But the issue saw limited progress until the ministry returned to the matter in late February, sparking public debate.
"The government postponed releasing the policy back in 2017, as the timing was not that perfect yet," said Pang Shi, researcher and vice-director of employment and entrepreneurship at the Chinese Academy of Personnel Science.
"At the time, the authorities worried that raising the retirement age hastily could pose a threat to the job market," she said. In addition, some surveys found that people were skeptical of the policy and how it would directly influence their work, life and retirement.
The authorities then gave a grace period for the public to accept the proposal, Pang said.
She said that since it was stated in the 14th Five-Year Plan that the government will raise the statutory retirement age in a phased manner, though no specific age target was given, the government will take action when the time is ripe for raising the age.
Unforeseeable future
The public holds different opinions on the proposal.
Gao Di, who is in his 30s and works at a Beijing online travel agency, said he wishes to retire at 60 or even earlier if he earns enough money to support himself for the rest of life.
"I understand that in some high-tech areas, especially those positions requiring higher knowledge, raising the retirement age can help save human resource costs. But at the same time, young people have filled most of the vacancies in areas such as online companies," he said.
He also said he has concerns about the employment of college graduates who may face greater pressure if employees continue to work after 60.
Cheng Pingzhu, 57, a rehired staff member of the human resources bureau of Jixi, Anhui province, said she is willing to work as long as she is needed but does feel less energetic than younger workers.
"Now many jobs require computer use skills, which the seniors are weak at, and my memory is getting weaker as my age increases," she said. "I'm rather serious about my work, which brings burdens and pressure, though I have been rehired. I plan to quit in June, after finishing my current work."
Pang, the researcher, said that it will be difficult for the public to reach a consensus on delaying retirement, but the authorities can take more flexible measures to balance the pros and cons of raising the retirement age.
These could include "implementing flexible policies for work that requires physical strength or brain work, and giving a transition period between lawmaking and enforcement", she said.