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."



Oil Prices Up Over 1% on US Hurricane Impact Concerns

FILE PHOTO: A view of the Johan Sverdrup oilfield in the North Sea, January 7, 2020. Carina Johansen/NTB Scanpix/via REUTERS
FILE PHOTO: A view of the Johan Sverdrup oilfield in the North Sea, January 7, 2020. Carina Johansen/NTB Scanpix/via REUTERS
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Oil Prices Up Over 1% on US Hurricane Impact Concerns

FILE PHOTO: A view of the Johan Sverdrup oilfield in the North Sea, January 7, 2020. Carina Johansen/NTB Scanpix/via REUTERS
FILE PHOTO: A view of the Johan Sverdrup oilfield in the North Sea, January 7, 2020. Carina Johansen/NTB Scanpix/via REUTERS

Oil prices rose more than 1% on Thursday, spurred by concerns of Hurricane Francine impacting output in the US, the world's biggest crude producer, though worries of lower demand capped gains.
Brent crude futures for November were up $1, or 1.4% at $71.61 a barrel at 0632 GMT. US crude futures for October were up 92 cents, or 1.4%, at $68.23 a barrel, Reuters reported.
Both contracts rose by more than 2% in the previous session as offshore platforms in the US Gulf of Mexico were shut and refinery operations on the coast disrupted by Hurricane Francine's landfall in southern Louisiana on Wednesday.
"Both benchmarks, WTI and Brent, seem to have found some ground amid worries of disrupted US oil supplies," said Priyanka Sachdeva, senior market analyst at Singapore-based brokerage Phillip Nova.
"The region accounts for about 15% of US oil production, with any disruptions in production likely to tighten supplies in the near term."
But with the storm set to eventually dissipate after making landfall, the oil market's attention again turned to lower demand.
US oil stockpiles rose across the board last week as crude imports grew and exports dipped, the Energy Information Administration said on Wednesday.
The data also showed gasoline demand fell to its lowest since May at the same time distillate fuel demand dropped, with refinery runs also declining. The US is the world's biggest oil consumer.
Despite worries of Hurricane Francine impacting supply, the medium-term trend remains bearish for WTI crude, supported by weak demand from China and "growth scare concerns" in the US, said Kelvin Wong, senior market analyst at OANDA.
Earlier in the week, the Organization of the Petroleum Exporting Countries cut its forecast for global oil demand growth in 2024 and also trimmed its expectation for next year, its second consecutive downward revision.
"Oil traders are now looking ahead to International Energy Agency's monthly market report later this week for any signs of a weakening demand outlook," ANZ Research said in a note on Thursday.