Dear MEL Topic Readers,
China raises retirement age for first time since 1950s
Retiring early, getting a pension, playing board games with neighbors, and
looking after grandchildren were once a dream among Chinese seniors. However,
the state pension fund is on course to deplete in 10 years as more people
retire and live longer. Also, retirees’ children aren’t getting married or
having their offspring. In addition, China is facing labor shortages due to the
decreasing birth rate and job mismatching. In order to cope with these rising financial,
social, and demographic challenges, China has announced that it will gradually
raise the retirement ages for the first time since the 1950s from 50 to 55 for
women, 55 to 58 for females in white-collar jobs, and 60 to 63 for men in the
next 15 year. Compared with other developed countries, these retirement ages
are still much younger. While putting off the retirement age would help
maintain the number of workers and save pension payments, unless job
opportunities increase, young people, especially college graduates, might find
it difficult to get a job. Delaying pension benefits is one of the most
unpopular policies to implement even though it is inevitable when people live
longer and have fewer children. Another gloomy forecast in the next decades.
Read the article and learn about China’s recent move to save the
pension funds crisis.
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