China raising its retirement age may be unpopular but it’s much needed, analysts say– www.cnbc.com
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China’s top legislative body passed an official plan Friday to begin incrementally raising the nation’s statutory retirement age from Jan. 1 of next year and concluding in 2040, according to Chinese state media.
The final goal of the roughly 15-year plan is to raise the retirement age by three years for men to 63 years old, five years for women that work in factories from 50 to 55 and three years for women that work in white-collar jobs from 55 to 58.
The reforms are “overdue and very much welcome,” Erica Tay, director of macro research at Maybank Investment Banking Group, told CNBC.
China has been grappling with a shrinking workforce and looming pension budget shortfalls that could significantly damage the economy.