A Study On Choosing The Optimal Provision Of Postponing The Retirement Age Based On The OLG Model

The provisions of postponing the retirement age will have a bearing on both the society and individuals. Weather can it satisfy the needs of the development of the social and individuals has become the criterion of choosing the optimal provision of postponing the retirement age. The aim of this article is to choose the most reasonable way of delaying the retirement age.This study will build the screening system of retirement age delay provision which is based on the OLG model combined with the gender interests test. This screening system will compare different types of retirement age extending provision and analyze the impact on the society and individuals when putting the provision into effect under the situation where four parts of the OLG model have reach the balance point.Our research show that, firstly, the implement of the retirement age extend provision should be progressive, the pace of the implement should depend on the local economy. Secondly, shrinking of the retirement age between genders can embody the principle of gender inequality. Thirdly, resources per worker including capital stock per worker, wage, private savings, consumption of the first period will be reduced if delay the retirement age. Fourthly, individual utility will be reduced by the postponing retirement age which indicate that extend the retirement age is not ideal. To reach the target of improving the pension funds, the provision of postponing the retirement age should cooperate with financial subsidies. Fifth, the government should encourage the older worker to attend the training classes, this can not only improve the the labor force participation rate but also make them more productivity.