China Plans to Gradually Raise Retirement Age to Address Ageing Population
Beijing, China – On September 11, China’s top legislative body, the National People’s Congress, reviewed a proposal to gradually increase the retirement age. This follows the Chinese Communist Party’s Central Committee’s earlier indication of its intention to lift the statutory retirement age.
Currently, the retirement age for men in urban areas is 60, while for women, it is 50 in blue-collar jobs and 55 in white-collar jobs. These retirement ages have been in place since 1951 and are among the lowest in the world.
Lawmakers discussed a draft decision on the implementation of a gradual increase in the mandatory retirement age, submitted by the State Council, China’s cabinet. Wang Xiaoping, the Human Resources and Social Security Minister, presented the draft at the meeting of the Standing Committee of the National People’s Congress. The draft plan has not yet been made public.
In July, China had expressed its intent to raise its statutory retirement age in a voluntary and flexible way to counter its rapidly ageing population and a severe pension funding crisis. However, this move received severe backlash from its citizens.
The Chinese Communist Party, during its Third Plenum in July, stated, “In accordance with the principles of voluntariness and flexibility, [we] will steadily and orderly advance the reform of progressively delaying the statutory retirement age.” The Party had also mentioned the necessity to study and formulate a policy to delay the retirement age during its 2013 plenum.
Doubts Revealed
Retirement Age -: Retirement age is the age when people stop working and start getting a pension. In China, it’s 60 for men and 50-55 for women in cities.
Ageing Population -: An ageing population means there are more old people than young people. This can be a problem because there are fewer young people to work and take care of the elderly.
National People’s Congress -: The National People’s Congress is like a big meeting where important people in China make decisions about laws and rules.
Chinese Communist Party (CCP) -: The Chinese Communist Party is the main political party in China. They make most of the big decisions for the country.
Pension Crisis -: A pension crisis happens when there isn’t enough money to pay people who have retired. This can be a big problem for older people who need money to live.
Human Resources Minister -: The Human Resources Minister is a person in the government who looks after jobs and workers. In this case, it’s Wang Xiaoping.
Backlash -: Backlash means a strong negative reaction from people. In this case, some people in China are not happy about the plan to raise the retirement age.