What Are the Effects of Aging? What Are the Existing Pension Problems in China?

Chinas elderly population is huge according to the seventh population census in 2020, 18.7% of the population is over 60 years old, of which 13.5% are over 65 years old. China is moving towards a deeply aging society. The main drivers of this result are the implementation of the family planning policy and rapid economic growth. The highlight of this paper is that the influence of aging on the labor market, the financial market, and the quality of life of the elderly as well as the relationship among the three. A decline in the labor force will increase labor costs, which will particularly affect micro, small and medium-sized enterprises. However, rising wages could be offset by rising productivity, and rising wages will provide incentives to increase productivity, so it is not clear whether the reduction of labor force has many effects on labor productivity. Under the background of aging, the economic growth will be affected, and the consumption structure has also changed. At the same time, the mental health of the elderly is the most neglected problem. As for pension problems, this paper mainly studies the unequal distribution of pension resources. The conclusion is that the government and enterprises cooperation mechanism should be used to expand the financial investment of the elderly. Moreover, pay attention to the physical and mental health of the elderly through the establishment of different pension institutions.