FEATURE » RETIREMENT
IS POSTPONING RETIREMENT AN ANSWER TO HONG KONG’S TALENT SHORTAGE? In this exclusive with HRO’s Tracy Chan, JSM lawyer Jennifer Tam shares tips on managing older employees in the workplace, in light of China’s recent announcement around the gradual increase in the statutory retirement age.
Jennifer Tam
Employment & Benefits partner
Johnson Stokes & Master (JSM)
The ageing population has become a global phenomenon. According to the World Health Organisation (WHO), by 2030, one in six people in the world will be aged 60 years or above. The data further predicts that the proportion of the world’s population over 60 between 2015 and 2050 will nearly double from 12% to 22%. China has one of the fastest-growing ageing populations in the world. The latest statistics published by the Ministry of Civil Affairs of the People’s Republic of China and the China National Committee on Ageing showed that by the end of 2023, there was 296.97 million aged 60 and above in the country, and 216.76 million aged 65 and above, accounting for 21.1% and 15.4% of the total population respectively. Meanwhile, WHO has revealed that life expectancy at birth in China has improved by 6.78 years – from 70.8 years in 2000 to 77.6 years in 2021, while healthy life expectancy has improved by 5.45 years – from 63.1 years in 2000 to 68.6 years in 2021. To unleash the potential of the older workforce, China’s government announced in September 2024 the gradual increase of the statutory retirement age over the course of 15 years.
22 » Human Resources Online Hong Kong » H2 2024
Starting 1 January 2025, the statutory retirement age for men in the country will be gradually pushed back from the original 60 to 63; while for women blue-collar and white-collar workers it will be extended from 50 and 55, to 55 and 58, respectively. Keeping an eye on Hong Kong, the Census and Statistics Department also expects population ageing to continue. The number of elderly persons aged 65 and over is projected to nearly double over the next 25 years, increasing from 1.45 million in 2021 to 2.74 million in 2046. The increasing proportion of elderly persons in the total population has resulted in driving down the overall labour force participation rate. As a city well-known for its diligent and hard-working lifestyle, should Hong Kong follow