Its about you and me: will early retirement suffer from the implementation of flexible retirement system

category:Finance
 Its about you and me: will early retirement suffer from the implementation of flexible retirement system


First question:

Recently published by the peoples publishing house, the Fifth Plenary Session of the 19th Central Committee of the Communist Party of China (hereinafter referred to as learning guidance hundred questions) mentioned that delaying retirement will adhere to a small and gradual adjustment, in order to reduce social shock and win more support.

Because delaying retirement will change peoples employment and retirement behavior, affect peoples income level, life style and other aspects, to take a gradual increase way, can reduce its impact on peoples lifestyle to the minimum.

Sun Yongyong, an associate professor at the school of public management of central China Normal University, told reporters from the first finance and economics department that the delayed retirement plan needs to be introduced as soon as possible and can not be delayed again and again. However, it is still necessary to take small steps and walk slowly to prevent severe impact on the labor market. This is a very complex reform, which is related to all aspects of the economy and society. We need to take early action and go slowly, leaving a long transitional period to resolve various contradictions.

Yang Yansui, director of the employment and social security research center of Tsinghua University, believes that the direction of gradual reform will not change. However, because the reform has been delayed for a long time due to various reasons, when the retirement peak is coming, it is too slow to walk. Therefore, it is suggested to adopt a gradual step-by-step fast walk.

Why is it a consensus to delay the retirement age of women?

As the retirement age of female employees is too early (50 for female workers and 55 for female cadres), it is also a realistic policy choice for women to take a step ahead of or faster than men in delaying retirement.

From the perspective of the world, the proportion of elderly women in the elderly population is increasing, which is a major trend of aging. Compared with elderly men, elderly women have obvious survival advantages. According to the latest world population outlook 2019 released by the United Nations, the proportion of elderly women is more than 60% in the elderly population aged 80 years and above, and more than 70% in the super elderly group.

The average life expectancy of women is higher than that of men. For a long time, in Chinas retirement system, the retirement age of women is 5-10 years lower than that of men, which ranks first in the world.

Third question:

According to first finance and economics, realizing the retirement of men and women at the same age is the mainstream proposal in the industry. The reason is that the working conditions have been greatly improved than before, and the number of jobs that are not suitable for women, such as heavy physical strength, has been greatly reduced. At the same time, the life expectancy and quality of life of elderly women are higher than that of men.

In addition, there are different opinions. Sun Yongyong believes that considering the differences between women and men, it is not necessary to pursue the same age retirement of men and women.

Fourth question:

There is no consensus on whether the delayed retirement has a positive or negative impact on employment. For a long time, due to the concern that delayed retirement will have crowding out effect on employment, relevant departments have been cautious in this reform, and the appearance time of delayed retirement scheme has been delayed repeatedly.

Yang Yansui also believes that in the job market, young people have young peoples jobs, while old people have old peoples jobs. There is little cross between them. Therefore, the situation of delaying retirement and crowding out young peoples jobs is not prominent.

However, in reality, delaying retirement has an obvious impact on the posts in the system, because a large part of the units in the system can only vacate their posts for the new generation through the retirement of the older generation.

Fifth question:

Why should we distinguish raise retirement age and pension age?

Sun Yongyong said that retirement refers to retiring from work and entering the state of recuperation. In essence, it refers to withdrawing from the labor force, and receiving pension is only a means to provide financial support for retirees. Retirement and pension are not always the same. The outstanding performance is that many people are working on another job while receiving pension.

Yang Yansui said that in the era of planned economy, when people retire, they will receive pension. Therefore, people equate the retirement age with the age of receiving pension. However, there is no concept of legal retirement age in the world. It is only the standard age for receiving pension. It is up to people to decide whether to receive the pension according to the standard time, advance or delay according to their own situation.

Sixth question:

At present, the compulsory retirement system is implemented in China. When the workers reach the legal retirement age, they must be forced to retire. Employers have the right to terminate the work of the workers. Although the compulsory retirement system is convenient for statistics and management, it is not conducive to the development of individual ability because it does not consider individual differences.

Therefore, respecting the individuals will and implementing the flexible retirement system that varies from person to person has won more consensus in this reform. For example, the implementation of the early reduction and late increase plan for pension, the longer the retirement is delayed, the more pension will be obtained, thus giving the elderly more choices.

Learning guidance hundred questions also put forward flexible implementation, strengthen incentive. According to sun Yongyong, flexible retirement is to allow early or delayed retirement. In order to reduce the resistance to the implementation of the system, we can do less subtraction and more addition. For example, if a female employee can retire at 55, her pension should be increased if the retirement age is raised to 60; however, if she still chooses to retire at 55, her pension will not be reduced.

Question 7:

What is the impact of this reform?

The reform of delaying the statutory retirement age will not only affect the employees who take part in the endowment insurance for urban employees, but also the residents who participate in the basic endowment insurance for urban and rural residents.

At present, the old-age insurance for urban and rural residents has realized the retirement of men and women of the same age, that is, they can receive the pension monthly when they are over 60 years old. After delaying the statutory retirement age, how to adjust the pension age of urban and rural residents is also a problem that must be considered.

What are the adverse effects of delayed retirement on workers?

To improve the statutory retirement policy involves the adjustment of the pension responsibility of the state, enterprises and families, which has been opposed in many countries.

In particular, studies have shown that increasing the retirement age has an impact on the working population. For individuals, raising the legal retirement age by one year, receiving less pension for one year, and paying more social insurance premium for one year will result in greater comprehensive loss. If you are unemployed within one year of late retirement and unable to pay social insurance premiums, the basic life of individuals and families will also be affected. In the view of those affected, raising the statutory retirement age is to shift the responsibility of providing for the aged from the state to the family.

However, under the impact of aging, the pension fund is facing the huge pressure of increasing income and reducing expenditure. Raising the rate and increasing the national financial subsidies will ultimately transfer the burden to enterprises and individuals. Relatively speaking, delaying the retirement age is the best choice under the background of aging. Therefore, increasing the legal retirement age has become a common international practice to deal with aging.

Question 9:

Is delaying retirement to balance the income and expenditure of pension?

Lu Quan said that the reason for the extension of the retirement age was not the pension crisis. From the international experience, when Germany extended the retirement age, there was a large amount of pension balance. In fact, the purpose of extending the retirement age is to balance the intergenerational relationship. Now the age of our labor force entering the labor market for the first time is getting later, and peoples life expectancy is also prolonged, which is the main reason for the pressure of pension income and expenditure.

Sun Yongyong also believes that in raising the legal retirement age, we can not put the balance of income and expenditure of the basic pension insurance fund in the first place. Raising the statutory retirement age does help to improve the financial situation of the pension funds income and expenditure, but it is only one of the various means to meet the challenge. It is not enough to completely reverse the situation.

Question 10: what industries will delay retirement promote? Such as home economics, nannies, nurseries and so on. Due to the lack of public services for the care of children under three years old and the elderly in China, a large number of retirees have to bear the responsibility in this respect. After the postponement of retirement, whether the demand of families in this respect can be socialized and bring about the great development of these industries is also a question of wide concern. Experts interviewed by first finance and Economics said that such demand does exist, but whether it can be transformed into effective demand and purchase services from the society is still determined by peoples income level. From the current income level of China, the degree of demand transformation is not high. Source: Chen Hequn, editor in charge of Finance and Economics_ NB12679

Question 10:

Will delaying retirement promote the development of which industries? Such as home economics, nannies, nurseries and so on.

Due to the lack of public services for the care of children under three years old and the elderly in China, a large number of retirees have to bear the responsibility in this respect. After the postponement of retirement, whether the demand of families in this respect can be socialized and bring about the great development of these industries is also a question of wide concern.

Experts interviewed by first finance and Economics said that such demand does exist, but whether it can be transformed into effective demand and purchase services from the society is still determined by peoples income level. From the current income level of China, the degree of demand transformation is not high.