Starting January 1, 2025, China is gradually raising its statutory retirement age over a 15-year period to address an aging population, marking the first change in over 70 years. By 2040, the retirement age will reach 63 for men (up from 60), 58 for female white-collar workers (up from 55), and 55 for female blue-collar workers (up from 50).
Key Takeaways
Denmark recently raised its retirement age to 70 for Danes born in 1971 or later. Should we do the same thing? The answer is two-fold. On the one hand, Congress should enact legislation to restore balance to our Social Security system, which faces a similar increase in costs in 10 years as Denmark does.
China has a mixed pension approach, including both basic social insurance and individual accounts. There are two social security systems in China: one for urban workers in the formal sector and one for rural farmers and nonworking urban residents. The systems have different benefits and are funded differently.
China's retirement age is one of the lowest in the world and it's set to increase for the first time since 1950. The current retirement age in China is 60 for men, 50 for women who work in factories, and 55 for women who work white collar jobs.
The Mercer CFA Institute Global Pension Index again found the Netherlands to have the best retirement system. The retirement systems of the Netherlands, Iceland and Denmark once again are the top three systems worldwide, according to the 2025 Mercer CFA Institute Global Pension Index.
China's decision to adjust its retirement age is driven by several critical factors: Aging Population: China's population is aging rapidly due to low birth rates and increasing life expectancy, which has reached 78.2 years.
Retired urban salaried employees currently receive an average monthly basic pension of 3,326 yuan (about $461) per person, primarily financed by the statutory pension contribution paid by employers at a rate linked to the total wages paid to employees.
Here are the top 10 ranking countries for average pension expenditure:
Employees who have worked continuously for more than one year are entitled to annual paid leave, based on cumulative years of service (including previous employers): 5 days: 1–10 years of service. 10 days: 10–20 years of service.
Roughly 7% to 9% of American households have $500,000 or more in retirement savings, though figures vary slightly by source, with data from late 2025 suggesting around 7.2% and older 2022 data indicating about 9%, showing it's a significant milestone achieved by less than one in ten families, despite higher averages driven by wealthy individuals.
If they mean Denmark, then yes, Washington can learn a thing or two about Social Security reform. Copenhagen raised its retirement age last week to 70. This is the result of a reform that ties the retirement age to average life expectancy at age 60.
As of 2017, as reported by the Organisation for Economic Co-operation and Development (OECD), only three European member states (UK, Denmark and Poland) and four OECD countries (Canada, Australia, New Zealand, United States) had laws banning mandatory retirement.
The average retirement age in the United States is 62, according to a 2024 MassMutual survey. In 1991, it was 57; in 2002, it was 59, according to a 2022 Gallup poll.
China's "6-Year Rule" dictates that non-domiciled foreign individuals become liable for Chinese tax on their worldwide income starting the seventh consecutive year they reside in China for 183 days or more annually, without a single trip outside China lasting over 30 consecutive days in any of those six years. This rule, effective since 2019, resets if a qualifying break (over 30 days) is taken, allowing for strategic tax planning by carefully managing travel to avoid triggering global tax obligations.
China life expectancy for 2022 was 78.20, a 0.11% increase from 2021.
With its affordable living, rich culture, stunning landscapes, and warm hospitality, China offers a unique and fulfilling retirement experience. From bustling cities to tranquil villages, there's a perfect place for every retiree seeking adventure, relaxation, or a blend of both.