Structural employment challenge prompts retirement age delay

The Standing Committee of the 14th National People's Congress, China's top legislature, is holding its 11th session in Beijing from Tuesday to Friday, and deliberation on a delayed statutory retirement age is on the agenda.

Since the central authorities confirmed for the first time in an important resolution issued in July that delayed retirement will be advanced on a "voluntary and flexible" basis, the narrative is no more about if, but when and how the statutory retirement age will be raised.

China has a serious aging population problem, a trend that is unlikely to be mitigated anytime soon. As the trend continues, the country may face labor shortages and pension pressures in the future. That is why the central authorities plan to raise the retirement age.