In a significant and controversial decision, the government of China has backed a plan that will gradually lift the working age, the first attempted in recent times since the implementation of a retirement age policy in the 1950s, which was introduced in a controversial decision. The shift in policy which was released on Friday seeks to allow the government to better respond to the problems that have arisen from China’s rapid development, the elderly population.
The new legislation providing for the raising of the retirement age will enforce from 1 January 2025, male retirement age will be raised from sixty years within 40 years to sixty-three years. The age will be raised from fifty-five years to fifty-eight years.
Human Resources and Social Security Minister of China Wang XiaopingXi, increasingly Xi Jinping stood by the decision during a press conference, justifying it by speaking about the need of “harry to keep the stamina and eloquence of economic and social progress.”. There is, however, a better way of investing”. He pointed out that the former rules on retirement arose within a context a number of years ago; shorter lifetimes and higher birth rates, as an example.
For several years, experts and policymakers have been saying that an aging population and decreasing labor force in China might pose great risks to the economy and the retirement fund of the economy. The working age group, comprised of people ages 16-59, of China’s overall population, suffers from retrenchments having been on a downward trend since 2012 with staggering loss of over three million workers each year. Also at present there are 297 million people in China aged over 60 or in other words 21 percent of Chinese people.
This Retirement age raised However this was economically important but it garnered widespread criticism. ‘why should we work longer’ is the question of the older workers while the worries of the younger workers is ‘will there be enough jobs for us and job security among them’. The Chinese social safety net is still quite thin, and on top of this, because of the rampant ageism that exists, many blue collar worker Many were concerned that they would be out of a job or pension.
Increasing the age of retirement had earlier been an option for discussion – but it was also turned down even after adverse public opinion. In this instance, the policy also applies to holders of the office since the decision requires workers to fund their retirement savings for 20 years (presently 15) before they qualify for monthly benefits.
Still, however, such scores become a reason for public concern, which makes such policies likely to float rather than be successfully executed by the government.
