China’s retirement-age changes force rethink of plans to work longer, save smarter
At a time when consumption confidence is lacking in China, professionals express mixed feelings about working longer in life
The decision to gradually raise China’s retirement ages from next year has set off waves of reactions across the country. And for many city-dwelling professionals, the change looks to usher in an unwelcome stretch to the career finish line.
With the news fuelling uncertainty about what the move means for their retirement plans down the line, some are being forced to rethink their saving and spending habits, weighing such financial considerations against the prospects of working longer. Meanwhile, the overall sentiment looks to reflect a growing sense of unease about financial security in the face of extended careers and future economic shifts.
“There’s an emotional impact, but it feels like the government is just testing the waters. Even with the new retirement age, it’s still earlier compared with severely ageing countries,” said Joe Zhou, a 35-year-old analyst in Beijing.
“For people my age, there are too many immediate concerns to deal with. Overall though, pensions are too small to rely on. And without enough money, it doesn’t matter when you retire – you just can’t afford to.”
However, Zhou said he may start contributing less – or stop contributing entirely – to his voluntary private pensions, which can be paid up to 12,000 yuan annually.
“I was afraid that the pensions wouldn’t be enough, but now I am less worried, as the gap between the retirement age and life expectancy has narrowed by three years.”
