Iran has set minimum retirement ages of 62 for men and 55 for women as part of sweeping pension reforms announced by First Vice President Mohammad Reza Aref on February 23.

The changes that took immediate effect established new mandatory insurance payment periods that will delay retirement for most workers, according to implementation guidelines for Iran's Seventh Development Programme. The new rules come as a large chunk of Iran’s population will reach the retirement age in the next few years, putting an extra burden on an already cash-strapped pensions system, Hamshahri newspaper reported.

Workers with fewer than 15 years of insurance contributions face the most significant increase, with a mandatory five-year extension to their payment period. Those with 15-20 years of payments must contribute an additional four months per year, while workers with 20-25 years face three-month annual increases.

The regulations create a graduated system, with two-month annual increases for those having 25-28 years of contributions. Workers who have already paid for over 28 years face no additional requirements.

"The mandatory insurance payment period cannot exceed 35 years for men and 30 years for women," the guidelines state. The document specifies that partial years of contribution will be calculated proportionally.

Several categories remain exempt from the new rules, including veterans, disabled workers, and those in hazardous occupations, who continue under their existing special regulations.

Government agencies retain some flexibility under the new system. With approval from the First Vice President, they can retire employees earlier than the mandated periods.

Also, workers covered by labour and social security laws may continue employment beyond the mandatory period if both worker and employer agree.

The reforms aim to address growing pension fund deficits. Financial responsibility for implementing the changes falls to individual government organisations, subject to approval from the Plan and Budget Organisation.

Workers who choose to retire before completing their mandatory payment period will receive reduced pensions, calculated proportionally based on their actual contributions versus the new required totals.

The changes affect all workers under Iran's social security system except those specifically exempted by law. Under the Civil Service Management Law, government employees may continue working beyond the new limits with relevant approvals, as the current cabinet is well into retirement.

"Implementation costs must be confirmed by the Plan and Budget Organisation and paid to the relevant pension fund," the guidelines specify, citing Article 29 of Iran's financial regulations.

Following the announcement, bnm IntelliNews reached out to locals in Tehran and Ardabil about the changes, with many in disbelief.

"The minimum household basket needed to meet workers' basic needs shouldn't be less than 30mn rials," says Samsam, a retired worker.

"The government has interfered with people's livelihoods. With the 40% increase in dollar rates, living costs have risen, and salaried workers feel more ashamed in front of their families every day," explains Mohammad K., a current worker.

"No matter how much they increase salaries and pensions for next year, with inflation above 50% and likely to rise further, the poverty line just gets deeper," says Fatiha A., a pensioner's wife in Ardabil speaking with bnm IntelliNews.

Mahsa, on social media, wrote: "Today, the retirement age increase that was approved in the Seventh Programme was officially announced, and all of us unfortunate ones must forcibly work for several more years."

She added: "This reminder is so we don't forget who, wearing the mask of opposition, became the architects of this mess and paved the way for these attacks on the livelihood of Iran's most vulnerable people!"

Following her comments, Milad in Karaj said to bnm IntelliNews, "Instead of addressing the corruption and inefficiency in pension funds, the government has taken workers' lives hostage!"