China's retirement age reform driven by longer life expectancy, increased schooling years: official

China's plan to gradually raise the statutory retirement age is driven by trends such as increasing life expectancy and longer schooling for the working-age population, Wang Xiaoping, Minister of Human Resources and Social Security, said at a press conference on Friday.

Chinese lawmakers on Friday voted to adopt a decision on gradually raising the country's statutory retirement age, marking the first adjustment in the arrangement since the 1950s.

According to the decision adopted at the 11th session of the Standing Committee of the 14th National People's Congress, the statutory retirement age for men will gradually be raised from 60 to 63 over a 15-year period starting in 2025. For women, the retirement age will increase from 55 to 58 for white-collar workers and from 50 to 55 for blue-collar workers.

Starting in 2030, the minimum number of years employees must contribute to their pension accounts will gradually increase from the current 15 years to 20 years, according to the new decision.

Driving the retirement reform are significant changes in China's population structure. Wang noted that the new decision is based on current life expectancy and years of schooling.

"The average life expectancy has risen from 40 years in the early days of the People's Republic of China to the current 78.6 years. The average number of years of education for the labor force has also risen to from 8 years in the initial phase of China's reform and opening-up to the current 14 years. There is a general delay in the age at which people enter the workforce," said Wang.

Officials say policies will be implemented to improve the pension insurance system and enhance protections for older workers.

"Ensuring the health of workers, particularly older ones, is an important part of China's efforts to promote a healthier society. We will strengthen occupational health monitoring, analysis and understanding of the health status of workers and work to prevent occupational diseases and health risks among older workers. The healthcare service system will be continuously improved based on the needs of older employees," said Yu Xuejun, deputy director of the National Health Commission of China.

Officials stressed that the decision would be introduced based on the principle of voluntary participation with appropriate flexibility and would unfold in a prudent and orderly manner.

China's retirement age is among the lowest in the world, despite a significantly increased life expectancy. In 2023, the population aged 60 and above in China reached 297 million, accounting for over 20 percent of the total population. Analysts suggest that delaying retirement is essential to adapt to China's demographic changes and is also in line with global mainstream practices.

China's retirement age reform driven by longer life expectancy, increased schooling years: official

China's top housing authority has noted "overall positive changes" in the real estate market, as homebuyer confidence was revived by a series of beneficial measures announced by major Chinese cities since September to boost the country's property markets.

The Ministry of Housing and Urban-Rural Development said most cities have seen a rise in visits to property projects by over 50 percent from a year ago.

Thanks to new policy adjustments on Sept 30, both transaction volume and inquiries for second-hand homes in Beijing increased notably during the week-long National Day holiday, which runs from Oct 1 to 7.

"On Oct 1, four orders were signed at our store and on Oct 2, one order was signed, bringing the total number to five. This marks a historical peak in our transaction records," said Liu Qiujing, a house agent at Huilongguan sub-branch of Lianjia Real Estate Brokerage in Beijing.

She also reported that property viewings at her store stood at 39 groups during the holiday, an increase of 15 groups over the previous week.

According to a circular jointly issued by six municipal departments on Sept 30, non-Beijing residents are allowed to purchase homes inside the city's fifth ring road if they have a record of paying social insurance or individual income tax in the city for at least three years - down from five years as was previously required.

The new policies which took effect on Oct 1 also lift the housing purchase restrictions in Tongzhou District, where the Beijing Municipal Administrative Center is located, to allow the district's homebuying rules to comply with the city's unified property market policy.

Under the new rules, homebuyers face less financial pressure, as the minimum down payment ratio for individual commercial mortgages are reduced from 20 percent to 15 percent for first-home purchases, and from 30 percent to 20 percent for second homes.

"Following the introduction of the new regulations, buyers have shown a stronger willingness to purchase properties, acquiring them more swiftly. Clients with rigid demand for residential housing are swiftly entering the market. From the perspective of homebuyers, their confidence has significantly increased," said Liu.

Between Oct 1 and noon of Oct 3, on-site inquiries for second-hand homes in Beijing jumped by 104.1 percent year on year, according to a report on the Ministry of Housing and Urban-Rural Development.

China's housing market sees positive changes following eased homebuying rules