China is set to raise its statutory retirement age from 60 to 65 years within the next five years, aiming to alleviate the mounting pressure on its pension system. This move comes as the population ages and declines, putting immense financial strain on the system.

The current retirement age, unchanged since the 1950s, is among the lowest globally. The new retirement age, yet to be confirmed, is suggested to be 65 for all citizens, phased in by 2029. This policy reform was approved in July during a high-level Communist Party meeting, marking a significant step in addressing China’s demographic challenges.

The pension system, the largest in the world, supports over a billion contributors or recipients. However, with a shrinking workforce and growing number of retirees, the system is unsustainable. Many experts argue that the current pension model is flawed, relying on a shrinking workforce to support a growing number of retirees.

Public response to the proposed changes has been mixed. Some argue that raising the retirement age is reasonable, while others fear age discrimination, intense work culture, and employability of older workers. The divide between urban and rural populations further complicates the issue, sparking debate over the fairness of the proposed reforms.

As China prepares for this major shift, policymakers face the delicate task of balancing economic sustainability with the needs of an aging population. A comprehensive solution is required, combining policy reforms with advancements in technology to support the elderly.

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