China Wants to Raise Its Retirement Age. A Pension Crisis Looms

China's Pension System Is Under Pressure

China's rapidly aging population is putting a strain on its pension system. The number of people over the age of 60 is expected to increase from 185 million in 2019 to 400 million by 2050. At the same time, the number of people of working age is expected to decline. This means that there will be fewer people contributing to the pension system and more people drawing benefits. The current retirement age in China is 60 for men and 55 for women. However, the government is considering raising the retirement age to 65 for both men and women. This would help to reduce the strain on the pension system. However, it would also be unpopular with many workers.

The Government's Plan to Raise the Retirement Age

The government has proposed a gradual increase in the retirement age. The retirement age would be raised by one year every three years, starting in 2025. This would mean that the retirement age would reach 65 for both men and women by 2045. The government has said that it will provide financial assistance to workers who are affected by the increase in the retirement age. Workers who are laid off before they reach the new retirement age will be eligible for unemployment benefits. Workers who are unable to find a new job will be eligible for a government pension.

The Pros and Cons of Raising the Retirement Age

There are both pros and cons to raising the retirement age. Pros * Raising the retirement age would help to reduce the strain on the pension system. * It would also help to increase the size of the workforce. * This could lead to economic growth. Cons * Raising the retirement age would be unpopular with many workers. * It could also lead to increased unemployment. * This could have a negative impact on the economy. The government will need to carefully consider the pros and cons of raising the retirement age before making a decision.