China Approves Plan to Raise Retirement Age from January 2025 

Commuters ride an escalator at a subway station during the morning rush hour in Beijing, Friday, Sept. 13, 2024. (AP)
Commuters ride an escalator at a subway station during the morning rush hour in Beijing, Friday, Sept. 13, 2024. (AP)
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China Approves Plan to Raise Retirement Age from January 2025 

Commuters ride an escalator at a subway station during the morning rush hour in Beijing, Friday, Sept. 13, 2024. (AP)
Commuters ride an escalator at a subway station during the morning rush hour in Beijing, Friday, Sept. 13, 2024. (AP)

China's top legislative body has approved a proposal to raise the country's retirement age, the official Xinhua news agency said on Friday, accelerating an overhaul of decades-old laws to tackle the economic pressure of a shrinking workforce.

China's retirement ages are currently amongst the lowest globally.

Reform is urgent with life expectancy in China having risen to 78 years as of 2021 from about 44 years in 1960 and projected to exceed 80 years by 2050. At the same time, the working population needed to support the elderly is shrinking.

The retirement age will be raised for men to 63 years old from 60, while for women in white collar work it would be raised to 58 years from 55. For women in blue collar work it will be adjusted to 55 from 50.

The changes are set to come into force on Jan. 1, 2025.

Having people work for longer would ease pressure on pension budgets with many Chinese provinces already reeling from large deficits. But delaying pension payouts and requiring older workers to stay at their jobs longer may not be welcomed by all of them.

Hundreds of thousands of people took to social media after Xinhua reported that China's top lawmakers discussed the topic on Sept. 10, with many expressing concern there would be more job seekers chasing too few openings.

By raising the retirement age, the government can increase the labor force participation rate, helping to mitigate the adverse effects of population aging, said Xiujian Peng, senior research fellow at the Center of Policy Studies at Victoria University in Australia.

"The government must take action. If the population continues to decline, the shrinking of the labor force will accelerate, further negatively impacting economic growth."

Xing Zhaopeng, ANZ's senior China strategist said the move would likely have "no impact on the short-term economy. In the long run, it will help to avoid premature labor shortages and maintain stable productivity growth."



Gold Rallies to Record High on US Rate Cut Optimism

FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo/File Photo
FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo/File Photo
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Gold Rallies to Record High on US Rate Cut Optimism

FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo/File Photo
FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo/File Photo

Gold prices soared to an all-time high on Friday as the dollar weakened amid prospects of super-sized reduction in US interest rates next week, while palladium has gained over 15% so far this week.
Spot gold was up hitting a record 0.3% at $2,567.23 per ounce by 0703 GMT, after high of $2,570.21 earlier in the session. Bullion has gained about 3% for the week so far, Reuters reported.
US gold futures rose 0.6% to $2,595.10.
The dollar fell to a one-week low on Friday, making greenback-priced gold less expensive for other currency holders, with investors on tenterhooks around uncertainty of a 25 or 50 basis point US rate cut next week.
"Regardless of the size of the initial Federal Reserve rate cut, we look to be on the verge of a potentially long and frequent easing cycle, which is a scenario that bodes well for assets such as gold, which are non-yielding," said Tim Waterer, chief market analyst at KCM Trade.
The International Monetary Fund said it was appropriate for the Fed to begin a long-awaited monetary easing cycle at its meeting next week as upside risks to inflation have subsided.
Traders see a 41% chance of a 50-bp reduction and 59% odds of a 25 bp cut.
Investors will scan the US consumer sentiment (preliminary) data, due later in the day, for further clues on rate outlook.
ANZ commodity strategist Soni Kumari said "we are seeing (gold) prices can go to $2,600 in the short term, given the price momentum is looking quite strong right now."
Spot silver rose 0.3% to $30.01 and platinum gained 0.7% to $983.95. Both metals are headed for weekly gains.
Palladium climbed 0.4% to $1,050.50 and was headed for its best week since December 2023, fueled by export curb concerns.
Russian President Vladimir Putin said Moscow should consider limiting exports of uranium, titanium and nickel in retaliation against the West.