Slow changes to retirement age

Slow changes to retirement age

Policies for gradually suspending the retirement age of employees should be introduced, according to The Decisions on Major Issues Concerning Comprehensively Deepening Reforms. This proposal is in line with people's expectation, says an article in Qianjiang Evening News. Excerpts:

The small step ahead proposed by a director of an institute affiliated to the National Development and Reform Commission is to extend the retirement age by one or two months every year, which means the retirement age would be this year's retirement age, 60, plus one month. The retirement proposal by Tsinghua University, on the other hand, is swift and radical, rather than gradual.

It has become the trend of the times to consider ways to increase the retirement age, yet the public are naturally concerned about the relationship between the retirement policy and their own livelihoods. Experts have pointed out that in developing countries where the social security coverage as well as return rate is low and a double-track system exists, when the social welfare and labor relationship is not yet straightened out, any radical move to change the retirement age would cause a negative reaction among most people.

There is nothing wrong with the proposal to gradually increase the retirement age of employees, given the extended life expectancy these days and the aging population. Say the average life expectancy is 74 years, people would only be able to collect a pension for nine years if they retire at 65. From this point of view, small and gradual step taken in suspending retirement age is much wiser and more appropriate than radical ways.

(China Daily 11/20/2013 page9)