Research on the Accumulation Effect of Pension Income and Payments Caused by Progressive Retirement Age Postponement Policy in China

J Aging Soc Policy. 2019 Mar-Apr;31(2):155-169. doi: 10.1080/08959420.2018.1500859. Epub 2018 Oct 25.

Abstract

A retirement age postponement policy will not only increase pension income but also reduce pension payments, which will cause an accumulation effect on the size of the pension fund and relieve the intensifying pressure on pension payments. Based on the analysis of historical data in order to predict the population and pension scale in China, this research shows that the working-age population will gradually decrease, the supply of labor will decrease, and the demographic dividend will gradually disappear between 2018 and 2055 if the current retirement policy remains unrevised. According to three different retirement age postponement policy options, we establish that there are significant accumulation effects that can alleviate the pressure on pension funds. Among these policies, the postpone retirement policy option, which is based on the working period, is more conducive to a smoother policy implementation effect in the long term.

Keywords: Progressively postponing; accumulation effect; pension income and payments; retirement age; scale prediction.

MeSH terms

  • Age Factors
  • Aged
  • Algorithms
  • China
  • Demography*
  • Employment / statistics & numerical data*
  • Humans
  • Middle Aged
  • Pensions / statistics & numerical data*
  • Public Policy*
  • Research
  • Retirement*