China39;s onechild policy has exacerbated its aging problem
Both older and younger workers worried about the changes
Reforms need to be done urgently before growth slows further
Fiscal gains likely to be limited initially

HONG KONG, Sept 24 Reuters China39;s move to raise retirement ages is a starting point to plug gaping pension deficits and bolster a shrinking workforce but more pain lies ahead as the economy slows, making further reforms urgent, say economists and demographers.

Aging populations are a global phenomenon, but the issue is particularly stark in China due to the legacy of its onechildpolicy, which was in place for three decades and has exacerbated its demographic challenges.

Chinas number of births dropped to 9 million last year and the United Nations forecasts China39;s working age population will decline by nearly 40 by 2050 from 2010 if fertility rates remain at current levels.

Both older and younger workers have expressed worries about the changes as policymakers grapple with widespread discrepancies between rural and urban pensions, maintaining public stability and high youth unemployment.

They need to solve the pension problem now because this is when they still have some growth to finance the deficit, said Alicia Garcia Herrero, Natixis39; chief economist for Asia Pacific.

China39;s economic growth rate has slowed from around 8 in the early 2000s to around 5 now and could be as low as 1 after 2035, she said.

Wary of public concerns,…