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Economic Observer Network Wu Chen/Text The pace of delayed retirement reform is gradually advancing. The just-concluded Third Plenary Session of the 20th CPC Central Committee adopted the "Decision of the CPC Central Committee on Further Comprehensively Deepening Reforms and Promoting China's Modernization", which clearly proposed to promote the gradual delay of the statutory retirement age reform in a steady and orderly manner according to the principles of voluntariness and flexibility.

It should be said that delaying retirement is an inevitable trend after China enters an aging society. First, with the advancement of medical technology, life expectancy has increased significantly, and people's health level has also improved significantly. Many people who are approaching retirement age are still in good physical and mental condition; second, the retirement age for Chinese women is relatively low (50 for ordinary employees and 55 for management positions). Some very capable female managers may be required to retire at the age of 55. Raising the retirement age for men and women is conducive to workplace equality to some extent; third, delaying retirement is a common practice for countries around the world to deal with aging. The retirement age in developed countries is generally between 62 and 67 years old. In countries with serious aging such as Japan and South Korea, a large number of people over 70 years old are still working.

However, the reform of delaying retirement must be promoted in a steady and orderly manner, and there should be more discussion on how to implement the principles of voluntariness and flexibility.

For a reform to be implemented smoothly, it requires the understanding and cooperation of the public. In this sense, it is very important to satisfy the people's right to know. This requires the openness and transparency of fiscal and social security funds. China's pension model is a pay-as-you-go system, that is, the pension insurance paid by young people in the year is used to pay the pension that needs to be paid in the year, and the foundation of pension reserves is not solid. The country has to do a general account. If the delayed pension policy is implemented, how much pension expenditure will be saved, how much pension reserves will be increased, and whether the sustainability of pensions can be solved once and for all?

Second, we must also consider as carefully as possible the possible impacts of a policy reform—some of which may be “unexpected.”

For example, if the retirement age is delayed to 65, one problem that may arise is the "old-age unemployment window period". "Age discrimination" in the workplace has always existed. Some companies have an unspoken rule of "45-year-old glass ceiling" when hiring. If middle-level managers cannot be promoted before the age of 45, they may face elimination; some companies also set age limits when recruiting, and those over a certain age will not even have interview opportunities. After all, there are limited senior management positions. For most ordinary people, how should they plan their 20-year career from 45 to 65 years old? How should they deal with the "unemployment window period"? These are all issues that need to be considered and discussed in depth.

In addition, delaying retirement will also bring about a blocking effect. In short, delaying retirement means extending the overall working life. If we want to reduce the unemployment window in old age, it means that new job opportunities have to be compressed, which may push up the unemployment rate of young people, which also needs to be weighed.

The blocking effect also has an invisible impact. In comparison, the mentality of middle-aged and elderly people is not as open as that of young people. They are not easy to embrace new things and lack the initiative and courage of young people. If too many middle-aged and elderly people stay in the workplace, it may increase the "old air" of the workplace and make the company seem a little lacking in innovation. This is a question that needs to be considered. In addition, in the civil service system, how to deal with the problem of redundant officials and redundant staff caused by the extension of working years cannot be avoided.

Another "unexpected" impact may be the fertility rate. Realistically speaking, Chinese women's early retirement actually makes a huge contribution to helping their children raise their grandchildren. It is common for grandmothers to take care of their grandchildren in both urban and rural areas of China. If women have to retire at the age of 65, it means that young people will receive much less support from their mothers when raising children. If there is no matching childcare support policy, the fertility rate may be further depressed.

Another reform that cannot be avoided is the reform of social security integration. There is still a gap between urban and rural pensions, and there is also a gap between those in the system and those outside the system in cities. How to narrow this gap is a question that needs to be considered.

All of the above clearly show us that a series of supporting reforms and innovations in related fields are needed to steadily and orderly promote the delayed retirement reform. The delayed retirement reform is a major event that concerns everyone, and also concerns the security and sustainability of a country's social security policy. It requires the joint efforts of individuals, the market and the state.

(The author is a financial writer and founder of Morning Books)