The Impact of Delayed Retirement on Economic Growth in the Background of Population Aging

Economic and Social Studies, University of Manchester, Manchester, United Kingdom

^* Corresponding author: haojin.ping@student.manchester.ac.uk

Abstract

China’s aging population has been more noticeable with fast demographic changes, which begs questions regarding labor supply, pension sustainability, and more general economic development. China’s population is aging quicker than in many other countries, yet it is at a level of insufficient economic development; consequently, its issues are more serious and complicated than those of many other countries. In this respect, “delayed retirement” has been proposed as the major instrument to manage aging-related issues in the social as well as the financial sectors. Delaying retirement, one could contend, boosts the labor supply and helps to reduce the growing strain on pension systems. Conversely, delayed retirement and population aging can cause changes in labor market structure and issues of intergenerational justice. This paper studies the likely consequences of delayed retirement on China’s economic growth and looks for ways to achieve social equality with financial efficiency by combining empirical data with policy analysis. This article addresses the key issues and probably benefits of delayed retirement in order to provide insights into more flexible, diversified, and sustainable policy design in face of accelerated aging.