China’s capital Beijing is expected to become a “super-aged” city by 2035, with around one-third of its population aged 60 or above, the state-run Beijing Daily reported.

The city had 5.29 million permanent residents aged 60 and above at the end of last year, accounting for nearly one-quarter of its population, the newspaper reported on Saturday.

The Beijing government is stepping up support for older residents, including raising the basic pension, according to the report.

China has been grappling with a rapidly ageing population and a shrinking population since 2022, posing challenges to its efforts to boost domestic consumption and manage debt. Hundreds of millions of people are expected to leave the workforce, while pension budgets are already under pressure.

Demographers and economists warn that declining birth rates could lead to fewer households and slower consumption growth over time, adding to the country’s economic challenges.

Population planning has become a key part of China’s economic strategy as policymakers seek to encourage more births. According to Reuters estimates, the government could face a total potential cost of around 180 billion yuan ($26.92 billion) this year to boost births.