China’s human resources and social security committee revealed their plan to review by 2017 the extension to retirement age, from the present 50 years old for women and 60 years old for men.
China's Human Resources and Social Security Minister Yin Weimin revealed to the Chinese press on Tuesday their plan to change the retirement age for all employees in the country.
According to Yin, this move would give aging employees more "time for mental preparation" before they go on retirement.
Aside from that, this move would also help the workforce adjust to the age imbalance in the country that currently worries heads of companies, especially in the industrial sector who need more laborers.
According to the plan, the retirement age, which is currently at 50 years old for women and 60 for men, would be gradually increased upon the implementation of the amendment.
Yin explained that the current retirement age is already outdated and should be changed in order to cope with the social conditions and life expectancy at present.
This new retirement age, which has not been revealed yet, is set to be submitted for review by 2016.
However, economy experts believe that the proposed retirement age would become 65 years old for the next 30 years.
Five years ago, the human resource and social security committee have also tried and filed to extend the retirement age due to concerns about greater workload and lower pensions.
Yin explained that the government would be setting up a planning system for the pension fund, which is currently at 3.06 trillion yuan ($488 billion).
He added that they would be expanding investment options to include products with higher returns.
"The future investments of the fund will be diversified to avoid putting all the eggs in one basket. Investments will include bank deposits, treasury bonds, projects with good prospects, among others," Yin stated.