The Chinese Ministry of Human Resources and Social Security announced last week that it will be drawing up a plan for delaying the retirement age as part of China’s new 2021-2025 “Five-Year Plan”.

The plan has not been released in detail but is in response to concerns of China’s ageing population, combined with the declining labour force, longer life expectancy across China and wasted resources within the labour market.

Retirement age in China

China’s retirement age is lower than many other countries. Because of ageing populations, many countries around the world are increasing their core retirement age.

Official data from the end of 2019 shows that 18.1% of China’s population (around 250 million people) were aged 60 or above. This is expected to exceed 300 million during the next five years. In turn, affecting the number of people of working age in China, which is expected to further decrease by 35 million during the next five years.

There are calls for raising China’s statutory retirement age in a more gradual manner in order to facilitate the interests of different groups and generations.

Vice-minister of Human Resources and Social Affairs in China, You Jun, has reassured that the government’s plans would take into consideration the country’s own circumstances and traditions.

He states: “Delaying the retirement age involves the vital interests of most employees. In the process of research and formulation of the plan, we will listen to opinions from all walks of life, fully account for their opinions and suggestions, and build social consensus.”

Age discrimination in China

Despite this reassurance, there are questions surrounding the raising of the retirement age in China without any concurrent plan to reduce discrimination against older workers. Inevitably, an older workforce in China could easily be subject to a degree of competition within the labour market as it slowly moves away from heavy reliance on the manufacturing industries and cheap labour and moves towards workers needing higher skills to help the country become more innovative. Reskilling of older workers will become increasingly important.