China's raising of retirement age tough but necessary move

Beijing makes unpopular change as number of retirees balloons and workforce shrinks

- Tan Dawn Wei

When Madam Wen Xin, 62, retired two years ago as a lecturer from a university in Beijing, her income went from 20,000 yuan (S$3,700) a month to half of that in monthly pension payouts.

Some lifestyle adjustments had to be made, such as spending less on eating out and little luxuries.

But the "freedom" she says she now enjoys is more than money can buy.

"I get to do the things I enjoy like travelling, exercising, playing cards and trying out new recipes," said the widow, who lives alone and sees her married son once a week.

"I don't have to set an alarm clock for the morning. I wake up naturally. I would not for a minute consider getting re-employed." Madam Wen is among the fortunate lot of cadres - government officials or state employees - who have accumulated a comfortable pension and were assigned an apartment, although she chose to retire five years after reaching the statutory retirement age.

China has the lowest retirement ages among major economies, with women retiring at either 50 or 55 depending on whether they hold blue or white-collar jobs, respectively, and men at 60.

By contrast, the average retirement age of Organisation for Economic Cooperation and Development, or OECD, countries is about 65.

But after about 70 years, the country is finally raising its statutory retirement age, a decision that sparked an immediate outcry when it was announced in July.

The decision was among hundreds of reform measures adopted at a recent major political meeting, the Third Plenum. The move would be taken "according to the principles of voluntariness and flexibility", said a document of the meeting.

As the number of retirees balloons and the workforce shrinks, Beijing is confronted with making the tough but necessary call of raising the retirement age, a politically unpopular move in many parts of the world.

But while there are no policy details yet, the ground has quickly soured on it.