China on Wednesday announced interim measures for the implementation of a more flexible retirement system to enforce the previously adopted policy of incrementally raising the statutory retirement age.
The measures stipulate the procedures for applying for flexible retirement and the requirements for receiving basic pensions, among other details.
According to the measures, the statutory retirement age for men will be gradually raised from 60 to 63 in the course of 15 years starting from January 1, 2025. Meanwhile, the retirement age for female cadres will be raised from 55 to 58, and that of female blue-collar workers will move from 50 to 55.
Starting in 2030, the minimum year of basic pension contributions in China required to receive monthly benefits will be gradually raised from 15 years to 20 years at the pace of an increase of six months annually.
According to the measures, people will be allowed to voluntarily retire by no more than three years in advance after reaching the minimum year of pension contributions. It is, however, not allowed to retire earlier than the previous statutory age.
The new measures will also allow individuals to postpone retirement to an even later date if they reach an agreement with employers, but such a delay should be no more than three years.
“Our country’s pension structure includes the basic pension insurance system and their private pension accounts. If people retire a year later, the average social salary will be higher, the payment period will be longer, and the pensions will be higher,” said Zhang Yi, a professor from the School of Public Economics and Management of Shanghai University of Finance and Economics.
“A flexible retirement system gives people greater choice to choose the retirement time based on their own needs, willingness to work, physical conditions, family circumstances and corporate needs,” the professor noted.
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