Anger Erupts as China Raises Its Strikingly Low Retirement Age
Governance in China, under Xi Jinping's helm, has been very decisive and has taken up even the most thorny issues. However, the country's retrograde china retirement age policy took several years of deliberation. China made history on September 13 by announcing an increase in the retirement age for the first time since the 1950s. The move brings China more in line with retirement ages in richer countries, but it has met mixed reaction and even mass discontent among the populace.
Setting the Scene Historically: China Retirement Age
The current China retirement age is among the lowest in the world and was set in the 1950s when life expectancy was far shorter. Traditionally, men retire at 60, while for women, it is as early as 50 or 55 years depending on the profession. In comparison, in many developed countries, the age of retirement stands at around 65 to 67 years and even higher in some countries. One of the biggest growing points of concern has been the increasing gap between China's retirement policy and that of other nations.
Confronted with the consequences of an aging population, China is facing a rapidly shrinking labor force which puts immense stress on the nation's social security system. As the number of working-age individuals goes down with ever-growing retirees, the sustainability of pensions has been severely challenged. A rise in the retirement age should thus come into place to restore the balance.
Public Reaction: Anger and Frustration
Despite the economic rationale behind the move, a large number of citizens in China are up in arms against the move. The most common concern amongst these workers is that now they would need to work longer to get their pensions instead of working harder for a couple of decades in various fields. The policy, hence, would eventually affect those laborers who have been working in hazardous and risky jobs and also of the opinion that prolonging their working years would be unfair.
The frustration also grows out of the fact that, on one hand, China's pension system already faces low pension payout to retirees. Many fear raising the retirement age without addressing these systemic issues will only make it worse for future generations of retirees.
Xi Jinping's Bold Move and the Road Ahead
President Xi Jinping has long made it a point to take bold actions for the party and people. Retirement age policy falls into that category, with its more contentious short-term rather than positive impact. A decision that underlines Xi's readiness to take unpopular decisions if they are perceived as coinciding with the long-term interests of the country - a distinctive mark of his tenure thus far.
The government would then need to balance this reform with policy measures that address the concerns of the working population. Policies such as increasing pension pay-outs, retraining for older workers, and health support would cushion the effect of working longer.
Conclusion
Increasing China's retirement age is among the key changes in labor and social security policies taken by the country. While the move brings China closer into line with retirement norms in much of the rest of the world, the depth of public ire over the change makes it worth being more circumspect about such reforms. Confronted with the dual pressures of a rapidly aging population and a shrinking workforce, the way in which the country manages this transition will be critical in determining the long-term success of both its economic and social policies.
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