Beijing, Jul 26 (PTI) The ruling Chinese Communist Party’s plan to raise the retirement age of the working population to cope with the rapidly ageing population has created ripples of resentment among the public.
According to the present structure, the retirement age for male workers in urban areas is 60 years while that for female workers is 50 or 55 depending on their occupation.
The recently concluded third plenum of the Communist Party of China (CPC) has unveiled comprehensive reforms to advance the modernisation of the economy -- plagued by a deepening demographic crisis, sluggish growth and mounting local government debt.
The powerful body also discussed plans to raise the country’s retirement age in a “voluntary and flexible” manner.
The World Population Prospects 2024 report released on July 11 said that China's population, currently 1.41 billion in 2024, will fall to 1.21 billion in 2054 and further decline to 633 million by 2100.
“It is anticipated that China, the country currently with the world’s second-largest population, will likely experience the largest absolute population loss between 2024 and 2054 (204 million),” the report said, adding, “Longer-range population projections are more uncertain for China.”
The population and its composition by the end of year 2023, according to the National Bureau of Statistics of China, states that the population aged 60 and above was 21.1 per cent (296.97 million) of the total and of which, aged 65 and above was 15.4 per cent (216.76 million). The population in the working age bracket, i.e. between 16 and up to 60 years is 61.3 per cent (864.81 million).
The official document approved by the plenum, held here last week, listed over 300 policy measures as part of the wide-ranging reforms to be completed by 2029. However, the CPC has not officially announced any schedule to implement the plan to increase the retirement age.
According to the document, the government would move to increase the retirement age in an “orderly” and “gradual” way and seek to develop the “silver economy” to create diverse jobs for older people.
But the plan, which has been in the works for several years, has generated a backlash in Chinese social media with people expressing their dissatisfaction over the prospect of delayed access to their pensions while younger employees averring that the rise of the retirement age will leave them with fewer jobs if the older workers stay.
People also shared a forecast by the state-run Chinese Academy of Social Sciences in 2019 stating that China’s state pension fund would run dry by 2035 because of its dwindling workforce amid increased concerns.
Peng Peng, executive chairman of the Guangdong Society of Reform, a think tank connected to the provincial government, said delaying retirement might be a double-edged sword in today’s economy.
“It could reduce the financial burden on local governments, but it might also increase employment pressure, which is a typical example of the complexity of current reforms,” Peng told the Hong Kong-based South China Morning Post.
However, Feng Jin, an economics professor at Fudan University specialising in social security, said it was inevitable that the retirement age would rise and a “voluntary and flexible” increase might prove easier for people to accept.
“Delaying retirement faces opposition from some, particularly those with lower incomes and uneasy working conditions; after age 50, their wages remain low with limited growth potential, so they prefer to retire early and start receiving pension sooner,” she said.
Yuan Xin, vice president of the China Population Association and a professor of demography at Nankai University, said there should be a transition period where employers offer flexible wages, working hours and locations.
“Institutionally, relevant departments should be established to coordinate efforts and create a cross-departmental linkage mechanism. The policy system should be optimised to support health, fertility, employment, retirement, social security, and elderly services,” he told the Post.