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China’s plan to raise its retirement age in progressive steps may be put into action in 2016, but details remain under discussion.
China's Ministry of Human Resources and Social Security (MHRS) will submit the plan to authorities for approval this year, and simultaneously solicit public opinions on the matter.
The potential for a higher retirement age has sparked discussion since it was first proposed. Many academics believe it is necessary for the country to raise retirement age in order to cope with the aging population and labor shortage.
However, the details for implementation are still in discussion. Experts debate whether it’s better to adopt a one-size-fits-all approach or more flexible measures.
Officials from MHRS previously disclosed that the age raise may start gradually, with authorities raising the retirement age by several months every year.
A report released by the Chinese Academy of Social Science found that if the retirement age was raised by one year every four years starting from 2020, China’s working population could be maintained at 450 million by 2050.
Raising the retirement age will also improve operation of the pension fund since paying members will increase, the report said.
However, some experts believe that the plan should include some flexible measures. For instance, people could choose to retire earlier or later, but their retirement age would be linked with a pension. That way, those who pay more can also get more after retirement.
Others hold that China’s aging population and pension pressures do not permit the country to adopt flexible measures. They believe that a one-size-fits-all policy would be the most effective.
Regardless of the final decision, the adjustment will be brought about step by step after a long "warm up" period, analysts explained.
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