China to extend retirement age by three years and serve for another three years

In line with the aging and low birth rate trend, China, which has extended the retirement retirement age for workers by three years, has decided to introduce a system that allows them to work for up to three more years in addition to the increased retirement age.

China's Ministry of Human Resources and Social Security, the Ministry of Finance, and the Central Organization of the Communist Party of China announced a tentative implementation plan for the "flexible retirement system."

China's ruling party and the government said the retirement age will be 62 based on male workers born in September 1972, and explained that if the company agrees with it, it could flexibly delay retirement for 62-65 years by adding another three years.

As of the end of 2023, China had 296.97 million people over the age of 60, accounting for 21.1% of the total population, entering a "moderate aging society."

By 2035, the number of people aged 60 or older is expected to reach 420 million, exceeding the 30% mark, and the proportion of the elderly population will peak by 2050.

In addition, as the baby boomers born in the 1960s and 1970s reach retirement age, the trend of retirement of more than 20 million people every year is expected to continue for the next 10 years, with a decrease in the working population and an increase in the burden of social support expenses.