Forget About Retiring, China’s Economic Planners Say – Businessweek

What if Chinese were required to work an extra five years, or even a decade, before retirement? There are growing calls among officials and academics in China to consider that controversial move as the country’s rapidly aging population puts new stress on its pension program. China must consider “deferred retirement,” said Hu Xiaoyi, a vice minister of human resources and social security, on Oct. 22, speaking to journalists at a seminar in Beijing.

An elderly man carries bottles of water for sale as he makes his way along a business street in Beijing

Right now most of China’s workers retire earlier than those in many other countries. Men, for example, stop working at 60, while many women retire at 50, a precedent set in Mao-era 1950s China. That fact, along with the still strong one-child policy, complicates the task of managing the growing costs associated with an aging population and shrinking workforce.

According to China’s National Bureau of Statistics, in 2012 the number of those of employable age—formally classified as those from 15 to 59 years of age—actually fell, dropping by 3.45 million, to 937.27 million. “Last year, the working-age population dropped for the first time, a signal that China needs to make better use of its human resources,” said Hu, reported the China Daily on Oct. 23. ”China should raise the retirement age as soon as possible, but it must take small steps and make the transitional period long enough for the public to adapt,” said Zheng Bingwen, a pensions expert at the Chinese Academy of Social Sciences in Beijing, reported the China Daily.

via Forget About Retiring, China’s Economic Planners Say – Businessweek.

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