The retirement age in China has been increased by the authorities to address the strains caused by demographic trends in the country. Historically, China had a younger retirement age compared to other nations, thanks to a large influx of young workers entering the workforce. However, due to decades of the one-child policy, there is now a shortage of young workers and contributors to the pension system in China.
To tackle this issue, Beijing announced a gradual increase in the statutory retirement ages. Men will see their retirement age rise from 60 to 63, while women in different job categories will also experience an increase in retirement age. This adjustment will be implemented gradually over the next 15 years to allow a smooth transition for those approaching retirement age.
Despite these changes, China still maintains a lower retirement age than many developed countries. The impact of the one-child policy has resulted in a higher number of retirees per working-age individual than 25 years ago. This situation, coupled with a surplus of engineering and science graduates who struggle to find suitable employment, has put pressure on the workforce in China.
The decision to raise the retirement age aims to ensure a sufficient number of young workers entering the workforce to support the economy and pension system. It also means that existing workers will contribute to the pension system for a longer period, ultimately reducing the strain on the system. Given China’s low fertility rates, it is likely that further adjustments to the retirement age will be necessary in the future.
While similar demographic pressures exist in other parts of the world, the situation in China is particularly acute. The authorities in Beijing may need to consider additional changes to the retirement age sooner than anticipated to address these challenges. Please rewrite this sentence.
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