Negative Effects Of Delayed Retirement And Five Supporting Policies

The delayed retirement policy alone can not achieve the two expected goals of alleviating the pension gap and increasing the labor participation rate of the elderly, and even has some negative effects.

In order to mitigate the negative effects of postponed retirement and achieve the desired policy objectives, we should also provide policy support from the retirement group, the young labor force and the enterprise burden when implementing the delaying retirement policy.

In addition to failing to achieve the expected goal, the delayed retirement policy may have some negative effects.

Summed up, mainly in the following aspects:

First, delayed retirement may affect the employment of youth groups, especially the employment of university graduates.

This is one of the main reasons why some scholars oppose the policy of delaying retirement.

When the market environment, product price and quantity of products remain unchanged, the total number of labor needed by enterprises is relatively stable.

After the delay in retirement, enterprises passively increase the employment of older workers, while reducing the employment volume of other employment groups.

Government departments, public institutions and other departments require less physical strength, and the older workers who work in these departments are willing to postpone retirement.

Postponing retirement may aggravate the employment difficulties of college students. The unemployment rate of young people in some European countries is relatively high, which may be related to the relatively high retirement age.

Second, delayed retirement may increase the burden on enterprises.

Although older workers are rich in labor experience, it is undeniable that their physical strength and creativity are declining, generally speaking, old age.

Labor productivity will be lower than that of young and middle-aged workers.

Therefore, in mining, pportation, warehousing, postal and other industries that require higher physical strength, or in financial, Internet, information technology and other higher requirements for innovation capability, if the government forces the enterprises to accept the elderly workers, it may cause the profit level of enterprises to decline and the burden of enterprises to increase.

In this case, the policy of delaying retirement is simply shifting the burden of "old age" from the shoulders of the government to the enterprise.

Third, postponing retirement may affect the efficiency of the micro subject.

In a micro body, whether it is a public institution or an enterprise unit, job promotion is an important means to motivate employees to improve their work efficiency.

After postponing retirement, a large number of elderly leading cadres will remain in the labor market, which may lead to some young workers unable to achieve the promotion according to established channels, which will reduce the labor motivation and efficiency of young workers.

In addition, after postponing retirement, some elderly workers who remain in their posts will not be able to devote much energy to work because of their physical condition and so on. Their work efficiency will also be reduced.

Fourth, postponing retirement may increase the number of elderly workers.

。

Although the aging of the population will lead to the shortage of labor force in the whole labor market, there will still be oversupply of labor in some industries and some industries, resulting in unemployment.

Old workers are less likely to be physically and innovating than young people. They are more likely to be fired, and once they are laid off, they will find it difficult to get jobs again.

In order to mitigate the negative effects of delayed retirement and achieve the expected objectives of the policy, the government also needs to introduce relevant supporting policies.

First, in-depth study of the factors that affect the decision making of labor supply for the elderly.

For example, the government can amend the existing pension payment system to make it more conducive to postponing the retirement of workers, through tax incentives to raise the actual wages of the delayed retirees, through the construction of public nurseries and other institutions to replace the elderly workers to look after the grandchildren's services.

Second, we should always pay attention to the impact of postponed retirement policy on youth employment and make preparations for timely adjustment.

University graduates are an important part of China's employment groups. Their employment is related to social stability. Delayed retirement may have a greater impact on their employment.

In addition, the liberalization of the second child policy will usher in the peak of youth employment in China around 2035.

The government needs to respond to the circumstances at that time.

The group structure should be accurately calculated, and the delayed retirement policy should be adjusted accordingly.

Postponing retirement is only one of the policies to deal with the problem of population ageing. When other more powerful policies (such as the second child policy) show effect, delaying retirement policy can be considered as a gradual exit.

Third, ensure the enterprise's employment autonomy and wage pricing power, and reduce the burden of enterprises.

The government should protect labor autonomy and wage pricing power of enterprises, allowing enterprises to decide whether to continue to employ older workers in their own units, and allow enterprises to decide at what price to employ older workers.

The government should not force enterprises to accept elderly workers. Instead, they should guide enterprises to employ older workers through preferential policies such as tax incentives and subsidies.

Fourth, improve the dual system of cadre tenure system and career development.

In this regard, the government can take the following two countermeasures: first, guide enterprises and public institutions to improve the dual channels of career development.

Under the dual channel of career development, guide employees to achieve promotion through technical route.

Two, the government should encourage enterprises and institutions with a longer term of office to adjust their cadre tenure system, shorten their term of office, encourage senior cadres to withdraw from their leading posts and make room for young people.

Fifth, properly rehousing unemployed elderly workers and rationally determining the level of protection.

In addition, the government can allow them to retire early and receive pensions for those unemployed workers who have reached the statutory retirement age or those who are unemployed after the statutory retirement age.