China's retirement age reforms not enough to fix pension headache

24/9/2024 7:25

        China's move to raise retirement ages is a starting point to plug gaping pension deficits and bolster a shrinking workforce but more pain lies ahead as the economy slows, making further reforms urgent, say economists and demographers.
        
        Aging populations are a global phenomenon, but the issue is particularly stark in China due to the legacy of its one-child-policy, which was in place for three decades and has exacerbated its demographic challenges.
        
        China’s number of births dropped to 9 million last year and the United Nations forecasts China's working age population will decline by nearly 40% by 2050 from 2010 if fertility rates remain at current levels.
        
        Both older and younger workers have expressed worries about the changes as policymakers grapple with widespread discrepancies between rural and urban pensions, maintaining public stability and high youth unemployment.