Deeply understand the significance of the reform to delay the statutory retirement age
On September 13, the Standing Committee of the National People’s Congress voted to gradually raise the statutory retirement age, a move that has been discussed in several important Communist Party meetings, including the Third Plenary Session of the 18th Central Committee, the Fifth Plenary Session of both the 18th and 19th Central Committees, as well as the 20th National Congress and the Third Plenary Session of the 20th Central Committee. The key takeaway from the Third Plenary Session is the focus on advancing this retirement age reform in a steady and orderly manner, emphasizing voluntary and flexible principles.
As China strives to strengthen its national capabilities and pursue a revival through modernization, the country faces the dual pressures of a large population which, while offering developmental advantages, also brings considerable challenges. This reality underscores the need for deep reforms aimed at enhancing social productivity and revitalizing societal vitality. Establishing a retirement age system that is responsive to changes in the economic, social, and demographic landscape is crucial for the overall development strategy.
When examining the retirement age framework, it becomes clear that transitioning to a delayed statutory retirement age is a necessary step for socio-economic progress. Currently, the retirement age stands at 60 for men and 55 or 50 for women—provisions established in the 1950s under a different set of circumstances. Over the last 70 years, China has undergone significant transformations, particularly with an aging population that presents complex challenges. The current retirement age no longer reflects the realities we face today or the needs for future development.
From a human resources perspective, utilizing human capital— a core driver of economic growth—encounters new dynamics. The educational attainment of new labor market entrants has risen dramatically from an average of 8 years in 1982 to 14 years in 2023. By not adjusting the retirement age, this increase in education level effectively elongates the time it takes for individuals to enter the workforce, reducing their average working years and ultimately diminishing the efficiency of human capital utilization. Furthermore, as the population shifts from predominantly young to more elderly, there is a shrinking labor force that necessitates raising the statutory retirement age. By doing so, we can better utilize human resources, increase labor supply, stabilize participation rates, and improve overall productivity—elements critical for sustaining high-quality economic growth.
In terms of workers’ preferences regarding retirement, the effort to delay the statutory retirement age caters to diverse needs. Currently, nearly 297 million people in China are aged 60 and above, with a life expectancy averaging 78.6 years. The increase in life expectancy and improved health conditions have fostered a greater desire among many seniors to stay engaged in society. Programs like the “Silver Age Teaching Program,” which connect retired educators with volunteer teaching and research opportunities, highlight this engagement, allowing them to apply their skills and experience in ways that contribute to community revitalization. Many seniors are eager to remain active contributors in fields such as education, traditional arts, and public welfare. Supporting those who wish to continue working, particularly younger seniors, can enable them to make meaningful contributions.
In conclusion, the gradual and structured approach to retirement age reform places a strong emphasis on a human-centered philosophy that respects individual choices. This initiative aligns with the diverse preferences workers have regarding retirement timing and optimizes the institutional framework in light of current trends. By increasing the potential and quality of the labor supply, this reform supports the transition from a demographic dividend to a human resource dividend, aligning with China’s distinctive path to modernization.
