China’s retirement age hike ignites social media backlash
The proposal to raise the retirement age in China has sparked a storm on social media. As reported by the Financial Times, younger generations are sharply criticizing this idea. However, experts believe that the change is necessary due to an aging society and the increasing strain on the pension system.
10:18 AM EDT, July 26, 2024
Younger Chinese people's dissatisfaction erupted after a report from a key meeting of the Communist Party of China mentioned raising the retirement age. Currently, in China, the retirement age is 50 for women doing physical work, 55 for women doing mental work, and 60 for all men. These are some of the lowest figures among developed economies.
According to estimates by the Center for Strategic and International Studies, the demographic dependency ratio for older people in China could rise from the current 21 percent to 52 percent in 2050 and as high as 83 percent in 2100. By comparison, in the United States, this ratio is expected to increase to 39 percent by 2050 and 55 percent by 2100.
China may raise the retirement age
Experts argue that raising the retirement age could slow the decline in the number of workers in China and reduce the pressure on the pension system. Wang Tao, chief China economist at UBS, points out inequalities in the current system. "Some receive very high pensions, while 70 percent of people receive very low benefits or none at all," she explains on FT.com.
Gao Lingyun, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, emphasizes that the current low retirement age was set when the average life expectancy was much lower and few people pursued higher education. The average life expectancy in China is approaching 80 years, and over 60 percent of young people pursue higher education.
Young Chinese people fear for their future
The proposal to raise the retirement age has faced sharp criticism from the younger generation of Chinese people. They fear for their job prospects in the face of economic slowdown and the real estate market crisis. Rumors have surfaced on social media that the retirement age might be raised to 65 years for those born after 1990.
Some members of the middle generation also express dissatisfaction. Gong, a 51-year-old engineer from Beijing, believes that "the current group of retirees overly benefited from the country's development dividend," enjoying earlier retirement and the fruits of China's rapid economic growth.
