Vikrant Shekhawat : Sep 15, 2024, 11:40 AM
China News: China's Xi Jinping government has recently announced significant changes in the country's retirement policy. Under this new policy, the retirement age of men has been increased from 60 years to 63 years. For women, the retirement age of women doing office work has been increased from 55 years to 58 years, while the retirement age of women working in sectors like factory, construction or mining has been increased from 50 years to 55 years. This new policy will come into effect from January 1, 2025 and will remain in place for the next 15 years.Need and objective of the new policyThis new retirement policy of China has been made keeping in mind the rapidly changing demographic conditions. China's population ranks second in the world, and its economy has gained global recognition. However, this change is to address the declining number of China's workforce and the increasing pressure of old age.In recent years, problems have increased due to old age in China's workforce. The number of working people has decreased due to the decreasing pool of pension money and increasing age. In view of this situation, Xi Jinping's government has decided to keep the elderly in the workforce.Possible benefits and challenges of the new policyThis new policy can have many potential benefits and challenges.Benefits:Pension savings: Through the new policy, China will be able to avoid paying pension to 30 crore elderly people who may retire in the next decade. This will reduce the pension burden and the government will benefit financially.Workforce stability: Increasing the retirement age will provide stability to the workforce and will not reduce productivity.Challenges:Health and efficiency: People working in old age may face health and efficiency issues, which may affect productivity.Social discontent: Increasing retirement age may increase the social and economic problems of the elderly, whose care and solution may be challenging for the government.China's economic scenario and future challengesThe workforce has played an important role in China's economy, but China is now facing a new challenge due to old age and declining birth rate. The aim of Xi Jinping's decision is to keep China's economy stable and deal with the pension problem. However, the wider impact of this policy can be seen in the long run.ConclusionChina's new retirement policy reflects the concerns of Xi Jinping's government towards economic stability and workforce management. On the one hand, the preparation to throw the elderly into the furnace of work has raised hopes of economic stability, on the other hand it is also bringing to the fore social and health issues. It will take time to understand the impact of this policy in the future, but it is clear that China is ready to take big and tough decisions to maintain its economic balance.