Rapid Fire
China to Raise Retirement Age
- 25 Jul 2024
- 2 min read
China is planning to gradually raise its statutory retirement age, which is currently among the lowest globally as it is facing pension budget deficits.
- In China, the current retirement age for men is 60 years, women (white-collar) is 55 years and women (factory workers) is 50 years.
- Demographic Changes:
- The life expectancy in China has risen significantly, from about 44 years in 1960 to 78 years in 2021, with projections to exceed 80 years by 2050.
- The population aged 60 and older is expected to rise from 280 million to over 400 million by 2035.
- The ratio of workers supporting each retiree is decreasing, projected to drop from 5-to-1 to 4-to-1 by 2030, and further to 2-to-1 by 2050.
- In India, the Central Government's pension expenditure is estimated to be around 2.40 lakh crore in the Budget 2024-25, representing 0.7% of the projected GDP.
- Additionally, India’s National Pension System is a low cost, tax-efficient retirement savings account under which the individual and his employer co-contribute to his retirement account for the social security/welfare of the individual.
- Similarly, the Atal Pension Yojana was launched in 2015, to create a universal social security system for the poor, the under-privileged and the workers in the unorganised sector.
