Raising retirement age an overdue move

China's retirement age, set in the 1950s, should have been raised long time ago because of many reasons. The retirement age for men in China is 60 and women between 50 and 55. This would have made perfect sense in the 1950s when China's life expectancy was merely 44 years. But they appear outdated today when the country's life expectancy is more than 78.

China's retirement age is among the lowest in the world, compared with even many developing countries.

For many men and women to retire between 50 and 60 when they have developed precious and well-rounded perspective of work due to their decades of experience is a huge waste for society. This is especially true for many who join the workforce in their 30s after pursuing doctorate degrees.

During my conversation with European and American people over the past years, I've heard many of them express surprise when told that the retirement ages for men and women in China are 60 and 55 respectively.

A few weeks ago, a friend who came to visit me in Brussels from Houston, Texas, sighed that officially she would have to work until 67 before she retires. The United States' life expectancy was 77.5 years in 2022, slightly lower than China's.

The average retirement age in the European Union is about 65 years, with some countries having raised it to 67. The Belgian government plans to raise the retirement age to 66 in 2025 and 67 in 2030.

You could argue that average life expectancy in the EU is about 81 years, higher than China's, therefore EU countries are justified in raising the retirement age. But the EU's life expectancy is lower than some Chinese cities', including Shanghai's 84 years.

Hence, the announcement last week by the Standing Committee of the 14th National People's Congress, China's top legislature, to raise the retirement age in the next 15 years to 63 for men and 58 for women is a move in the right direction and in line with the global trend and practice. More important, it suits the reality in China.

Raising the retirement age would help reduce the waste of human resources, allowing many people who think they can still contribute to their profession and society to continue to work.

It's absurd for many in China, including some media outlets, to refer to people in their 50s as elderly people or senior citizens because most countries and even the Merriam-Webster Dictionary define senior citizens as people aged 65 or above.

When some Chinese people in their 50s and early 60s claimed they were old, I often used to tease them by saying that in the US, you can contest the presidential election in your 80s. That was certainly the case just a few months ago when the 2024 US presidential race featured octogenarian President Joe Biden and 78-year-old Donald Trump. That said, I am no fan of gerontocracy.

China's rapidly aging population, too, calls for raising the retirement age to overcome the pension challenge before it is too late. China's challenges are greater because it has become old before becoming rich, unlike Japan and many other industrialized nations.

Overcoming the challenges posed by an aging population and building a society that is fit to deal with the changing demographics must be a priority for both the government and society. To me, even Shanghai, my home city and the largest metropolis in China, is ill-prepared to tackle this challenge.

There is also a need for more flexibility in the rigid retirement age system, including exploring sensible options for people trying to retire early and for those who want to continue to work after reaching the statutory retirement age.

With a population of 1.4 billion and huge regional disparity, China's situation is far more complex than many smaller countries. For example, the concern that whether raising the retirement age would make getting a job more difficult for youths given today's tough job market is fully legitimate.

There are many things to be considered and tackled. But raising the retirement age is clearly a move long overdue.