Original title: Come on, let’s figure out at what age you’ll retire!

According to a report by Information Times (reporter Wu Xia), Yin Weimin, Minister of China’s Ministry of Human Resources and Social Security, stated at a press conference held yesterday by the State Council Information Office that the ministry will release a plan to delay retirement this year and widely solicit public opinions. The plan is expected to take effect starting in 2022. It will be officially implemented starting from [year]. Yin Weimin explained that the policy of gradually raising the retirement age will be implemented in small, incremental steps, with a gradual approach over a considerable period of time—delaying the retirement age by several months each year—before eventually reaching the statutory retirement age.

or every 1 hour late 3 months added to annual retirement.

Regarding the gradual approach to delaying retirement, Yin Weimin also provided specific examples: “For instance, five years from now, if you’re 60…” “With the implementation of this retirement policy, you might retire at age 60 and three months—this way, it’ll be easier for everyone to accept,” said Yin Weimin. “The second person might retire the following year—at age 60 and six months.”

In the examples mentioned above, a phased approach to delaying retirement may be adopted. The plan will be implemented with a three-month delay per year. According to a rough estimate by the reporter, based on the above-mentioned retirement-delay schedule, if the plan is smoothly put into effect, the following groups of people will be affected precisely by the delayed retirement: female workers aged 50 or younger (women born in 1972 and later); female cadres aged 55 or younger (people born in 1967 and later); and male employees aged 60 or younger (regardless of whether they are workers or cadres, men born in 1962 and later).

Take the group of “female cadres” as an example; currently, the statutory retirement age for this group is 55. Years later, once the deferred retirement scheme is implemented, everyone born after 1967 will be “subject to deferred retirement.” Specifically, those born in 1967 will retire at age 55 years and 3 months, while those born in 1977 will retire at age 57 years and 9 months. Starting from 1986 onward, all “female cadres” born in that year or later will uniformly retire at age 60.

Currently, the statutory retirement age is 60. Regarding the group of “male employees,” male employees born in 1962 and later will all face a delayed retirement. Specifically, male employees born in 1962 will retire at age 60 years and 3 months, while male employees born in 1981 and later will all retire at the uniform age of 65.

The unified retirement age is crucial.

Social security experts point out that, at present, in addition to clarifying exactly how many months each year the retirement age will be delayed, it’s also crucial to determine the ultimate retirement age and whether the current gender gap in retirement ages will be eliminated. If men and women are to have the same retirement age, it should be uniformly raised to 60. Is the retirement age still 65? A reporter made a rough estimate: If the retirement age for both men and women were unified at 65, women born after 2006 would all retire at 65 in the future—delaying their retirement by as much as 10 or even 15 years compared to the current retirement age for women.

From this, it can be seen that the retirement-age delay plan will have a greater impact on those aged 70. For those born in the 1970s and 1980s, according to the Ministry of Human Resources and Social Security’s plan, retirement will be delayed in a “phased” manner: the retirement age will be raised by several months each year until, after a considerable period of time, it reaches the newly proposed statutory retirement age.

New Retirement Age Calculation Formula

The current retirement age for employees in our country is 60 for men. The retirement ages are 60 for male cadres, 55 for female cadres, and 50 for female workers. These were stipulated in the “Regulations on Labor Insurance” and related policies introduced in the early 1950s.

According to Minister Yin, “For each additional year of delayed retirement, benefits increase by 3.” Taking the example of “months,” we can derive the formula for calculating the retirement age after the retirement age is delayed:

The retirement age for female employees = 50 + 3 × (50 + Year of Birth - 2021) / 12

The retirement age for female cadres = 55 + 3 × (55 + Year of Birth - 2021) / 12

The retirement age for men = 60 + 3 × (60 + year of birth - 2021) / 12

We selected the same year, 1980. When calculated using female employees, female cadres, and males born in the year, the result is:

Retirement age for female employees born in 1980 =

50 + 3 × (50 + 1980 - 2021) ) / 12 = 50 + 3 × 9/12 = 52.25 years old

The retirement age for female cadres born in 1980 =

55 + 3 × (55 + 1980 - 2021) ) / 12 = 55 + 3 × 14 / 12 = 58.5 years old

Retirement age for males born in 1980 =

60 + 3 × (60 + 1980 - 2021) ) / 12 = 60 + 3 × 19/12 = 64.75 years old

Note:

When (current retirement age + If the birth year (2021) is equal to or greater than the maximum number of years by which retirement can be delayed as finally determined—for example, if the final regulation stipulates that men can retire at most at age 65, then the maximum number of years for delay is 5— the resulting retirement age will be the maximum retirement age.

Author: Wu Xia