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The country’s retirement age has remained unchanged for years, with one consequence being growing pressure on the pension system as the workforce shrinks and pensions are paid to more retirees.
Against this backdrop, China watchers pointed to the recently concluded Third Plenum of the Communist Party of China, which mentioned raising the retirement age, as a sign that Beijing is taking action to curb the trend.
The resolution document states: “In accordance with the principles of voluntariness, appropriate flexibility, the reform of gradually raising the statutory retirement age should be promoted in a stable and orderly manner.” However, the document does not specify the specific implementation details.
China has set a deadline, saying all of the more than 300 reform tasks listed in the document should be completed by 2029, the 80th anniversary of the founding of the People’s Republic of China.
While the document did not specify to what age the retirement age would be adjusted, there had been some hints. A report released in December by the Chinese Academy of Social Sciences, a leading state think tank, estimated that everyone would eventually retire at 65.
Huang Tianlei, a fellow and China program coordinator at the Peterson Institute for International Economics, told CNA that this shows the government is “making compromises.”
“It’s basically letting people decide whether they want to delay retirement. If they decide to delay retirement, they may get a higher pension; if they decide to take it on time or even early, they will get a smaller pension,” he said.
“It’s about providing some sort of incentive for people to retire later.”
Stirring up emotions among young people
The plans have struck a nerve among people across the country, especially young people, with many expressing their displeasure online.
“Those who want to retire live a hard life, and those who don’t want to retire live a hard life. The salary is high but the work is hard. How do young people live like this?” lamented a Weibo user.
Others are concerned about job security. “As long as the government creates a good working environment for the people, we are willing to work for a few more years, support ourselves, and not let our children worry too much.”
But the question is, in this era of involution, can a person in his 50s or 60s find something to do? “
Financial analyst Ms Chen is similarly concerned, describing the outlook as “challenging” given factors such as the rapid development of artificial intelligence and its potential to replace certain jobs.
She is considering multiple backup plans rather than relying on one job.
“We have to adapt to changes. I am thinking of starting with investing first and then upgrading my skills. Or I can work as a counselor and help others pass the CPA exam,” she told CNA.
Woody Zhu, a 24-year-old logistics supervisor, told CNA he felt like he was accepting a “sentence” when it came to the possibility of delaying retirement.
“I would say even if it was voluntary, probably 10% at best would do it voluntarily,” he said.
Mr Zhu noted that many of his friends vent their frustrations through humour, one way of doing so being by sharing emoticons on WeChat.
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