The choice of pension and retirement systems when post-60s baby boomers start to retire in China

By using dynamic programming method,this paper finds that a combination of immediately delayed retirement and accumulated pension system should be implemented if based on the goal of maximizing output,while a combination of undelayed retirement and accumulated pension system should be implemented if based on the goal of maximizing utility.In view of the substitutability of family utility and social output,and synthesizing reform resistance,a combination of gradually delayed retirement and accumulative pension system should be implemented.Certainly,with efficiency of factors unchanged,with the decrease of working-age population caused by the alternation of population generation,the increase of pension burden and the disappearance of capital dividend,a sharp decline of future economic growth cannot be changed no matter what kind of pension and retirement systems are implemented.Therefore,on the premise of stabilizing short-term economic situation,we should look for a new engine for economic development by system reform in the long run.