China's Historic Retirement Reform
Beginning in January 2025, China officially began reforming its retirement system, marking the first major change in nearly 70 years. This reform addresses the country's aging population and the strain on the state pension system by gradually increasing the retirement age over a 15-year period. The specific changes vary based on gender and occupation.
The New Phased-in Retirement Ages
China's phased retirement age increases, effective January 2025, aim to gradually raise the statutory retirement age over 15 years. The new targets are 63 for men and 55 or 58 for women, depending on their occupation. Individuals who retired before 2025 are not affected. For details on how the new ages apply based on birth year, see {Link: Hogan Lovells https://www.hoganlovells.com/en/publications/statutory-retirement-age-reform-in-china}.
Why is the Retirement Age Increasing?
The reform is driven by several factors, including China's rapidly aging population, increased life expectancy, and resulting pressure on state pension funds. More information on the drivers of this reform can be found at {Link: Hogan Lovells https://www.hoganlovells.com/en/publications/statutory-retirement-age-reform-in-china}.
Flexible and Gradual Implementation
The new policy includes flexible early and delayed retirement options.
Changes to Pension Contribution Requirements
Minimum pension contribution requirements are also changing. Starting in 2030, the minimum period for monthly benefits will increase from 15 to 20 years. For further details on the implementation schedule and options, see {Link: Hogan Lovells https://www.hoganlovells.com/en/publications/statutory-retirement-age-reform-in-china}.
How Old vs. New Retirement Ages Compare
A comparison of the old and new retirement ages by category is provided below:
| Employee Category | Previous Retirement Age (Before 2025) | Phased-in Retirement Age (By 2040) |
|---|---|---|
| Men | 60 | Up to 63 |
| Women (Blue-Collar) | 50 | Up to 55 |
| Women (White-Collar) | 55 | Up to 58 |
Impacts and Considerations for the Future
The reform has received mixed reactions. For a discussion of the potential impacts and future considerations, see {Link: Hogan Lovells https://www.hoganlovells.com/en/publications/statutory-retirement-age-reform-in-china}.
For more detailed information on China's social security system, a helpful resource is the Mercator Institute for China Studies (MERICS).
Conclusion
China's decision to raise its retirement age, implemented gradually from 2025, is a significant step to address demographic challenges. The phased increase in age and pension contribution requirements aims to strengthen the national pension fund. This reform will reshape the later working years for millions, requiring a balance between economic stability and social equity. Understanding these changes is vital for those planning retirement in China.
