On September 13, the 11th session of the Standing Committee of the 14th National People's Congress adopted a decision to gradually raise the statutory retirement age.
This topic has sparked widespread interest and discussion in society, with many wondering, "How will the retirement age be delayed? What changes will occur?" According to experts, a thorough knowledge is key to understanding and grasping the essence of this reform.
An elderly teacher instructs in a physics experiment class at Nanjing School for the Deaf in Nanjing, East China's Jiangsu Province, Sept. 3, 2024. (Photo: Xinhua)
Three fundamental facts
The first fact is that China's current statutory retirement age is 60 for males and 55 or 50 for females, which were established in the 1950s based on the societal norms and conditions of that time.
"Over the past 70 years, the health level and quality of life of the Chinese people, along with the mode of production and overall economic and social development of the country, have undergone significant changes. Therefore, we must appropriately adjust the statutory retirement age to align with these new circumstances. This adjustment is an objective requirement of economic and social development and an inevitable choice to adapt to the new normal of population development," said Yuan Xin, professor at Nankai University's School of Economics and vice-president of the China Population Association.
The second basic fact is that China has become an aging society since 2000. By the end of 2023, the number of elderly individuals aged 60 and above had reached 297 million, accounting for 21.1 percent of the total population. Looking ahead, the problem is projected to escalate. The material and spiritual needs of the elderly are varied. While protecting their livelihoods and ensuring they will be taken care of and enjoy their old age, providing the elderly a sense of worthiness is equally essential. This calls for appropriate policies and systems that supports elderly individuals who are still physically fit and willing to contribute.
"Delaying the statutory retirement age will help stabilize the labor participation rate and maintain the momentum and vitality of economic and social development. It will also create conditions for the social participation of the elderly so that older workers with stronger labor willingness and higher human resource endowment can play a greater role," said Mo Rong, president of the Chinese Academy of Labour and Social Security.
The third basic fact is that population aging is a common challenge many countries are facing. Each country formulates corresponding measures based on national conditions, and raising the statutory retirement age is an important measure many countries take in response to aging. Population aging will be an essential national condition in China for a long time, so effective solutions consistent with China's national realities are needed.
Experts point out that the above three basic facts are key considerations in advancing the reform of delaying the statutory retirement age.
Retired bus driver Kong Shengdong volunteers to repair bicycles for free in Hangzhou, East China's Zhejiang Province, on August 31, 2024. (Photo: CFP)
Two principles: voluntary and flexible
At present, an increasing number of people wish for greater autonomy and flexibility in deciding their retirement age based on factors such as employment, income, family situation and health conditions.
Professor Zhao Zhong, dean of the School of Labor and Human Resources at Renmin University of China, underscored the importance of voluntariness, saying the reform will not be a "one-size-fits-all", and it will not mandatorily require all people to retire after reaching the delayed statutory retirement age.
Zhao also highlighted the principle of flexibility, which allows employees, based on their circumstances and personal willingness, to choose to retire earlier or delay retirement under the conditions stipulated by the policy.
Mo added that the reform fully considers different groups' demands. For employees who wish to retire earlier, flexible early retirement is possible if they meet conditions such as the minimum years of basic pension contributions. Younger elderly individuals who are willing, able and have the conditions to continue working can choose to do so, ensuring workers have autonomy and flexibility in deciding their retirement age.
Gradualness
According to analysis from experts, the gradual approach of raising the retirement age shows that the reform will be carried out step by step, with fine adjustments and an orderly manner.
The decision also makes it clear that the delay of the statutory retirement age will be implemented in a gradual, flexible, differentiated and holistic manner, which indicates that the period of the reform will be relatively long and at a slow pace, Zhao said.
For example, workers nearing retirement age will not be delayed dramatically. For young laborers, the reform will see the retirement age rise by a larger margin, but with an extended period for adjustments and adaptation.
According to experts, raising the statutory retirement age is crucial to tackling the population's aging. This would transform the demographic dividend into a human resource dividend. Thus, the high-quality development of the population would support Chinese modernization.