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By Alimat Aliyeva
China will gradually raise the retirement age, which is currently one of the lowest in the world, to combat demographic problems, Azernews reports.
Many velayats have already faced budget deficits, and therefore measures will be taken to reduce the growing pressure on pension funds across the country, which will allow people to work longer.
Reform is urgent because life expectancy in China has increased from 44 years in 1960 to 78 years by 2021. China surpasses the United States in this area, and by 2050 it is projected that people's life expectancy will exceed 80 years.
The government's statement was part of a major policy document that also outlined plans to improve the strategy to combat the falling birth rate, which fell for the second year in a row in 2023 and is expected to decline for decades.
The reforms mentioned in the document are planned to be completed by 2029.
Currently, the retirement age for men in China is 60 years, which is 5-6 years less than in most developed countries. This limit is 55 years for women working in the office and 50 years for women working in factories.
The national health authorities expect the number of people aged 60 and over to grow from 280 million to 400 million by 2035, equivalent to the entire current population of the UK and the US.
Most countries have raised the retirement age in response to demographic pressure to protect pension funds and slow down potential workforce reductions, said Michael Herrmann, senior adviser at the United Nations Population Development Fund.
According to estimates by the Chinese State Academy of Sciences, the pension system will run out of funds by 2035.