China’s pension-age reform misses long-term challenges

Significance

Despite extensive criticism and discontent, the reform has not sparked large-scale popular demonstrations. Focus may now shift towards the government’s implementation of the reform, which has been designed to minimise public pushback.

Impacts

• Businesses and the government will need to implement strategies to alleviate the concerns of both older and younger employees.
• China's cautious approach, prioritising social stability, means the retirement age will remain lower than in many developed countries.
• Businesses should ensure timely and fair pension payments to reduce employee dissatisfaction amid retirement age adjustments.
• Early engagement with employees about retirement plans could mitigate potential conflicts.
• Government pressure may increase on companies to hire young people, addressing youth unemployment as older workers stay employed longer.