Research On The Influence Of Human Capital On Individual Retirement Expectation

With an aging population deepened, the average life expectancy has increased,delay retirement is inevitable, now the public is also concerned about the widespread problem of delayed retirement age. But which age is appropriate to delay the retirement age, it is expected to consider an individual retirement from the microscopic point of view, in order to provide a reference for developing the delayed retirement program. This paper attempts to study the influence of human capital on individual retirement expectations from the perspective of micro individual. Health and education are the two foundations of human capital, and the impact of education and health on individual decisions can't be ignored. Personal investment in education will affect the initial pre-working age, thus affecting the expected retirement. The health status is the foundation of all individual behavior, personal behavior will be restricted by the health status. Therefore, the paper is also concerned about the impact of education and health on the individual retirement expectations, thus provide a theoretical reference for policy formulation.The paper use the data of CHARLS baseline survey in 2011. “At what age do you plan to stop working? Stopping work in this context shall refer to having stopped all income-related activities, unpaid family business and having no intention of engaging in anything more serious than small pastime work.” The individual expectations of retirement age would be measured by the answer. We defined “you plan to keep working until you are physically able” as endless labor. First, the Binary Logit model was used to estimate the influence of human capital on the willingness of the workers to carry out the endless labor. Then construct a multiple linear regression model to investigate the impact of human capital on individual expectations of retirement age. From the estimation results of Binary Logit model, the higher the level of human capital, workers are more reluctant to select endless labor. With a high level of human capital, the worker are able to maintain a high standard of living in the present and in the future. There is no need to select the endless labor. Education hassignificant a effect on the willingness to endless labor of male, but not significant to women. Good health status will enhance the willingness to select endless work of workers. According to the result of multiple linear regression, human capital has a significant negative impact on individual retirement expectations. The higher level of human capital, the lower the expected retirement age of workers. Because with a higher level of human capital, the workers are easier to find a high-paying job, and recover the investment in human capital in a relative short period, saving enough pension funds. Highly educated workers tend to retire earlier, good health status promote workers to retire later.According to the above empirical results, this paper gives the following policy recommendations. First, the statutory retirement age can be different if the education level is different. Second, the scheme of delayed retirement should set up different regulations according to the gender, and reduce the gap of statutory retirement age between men and women. Third, strengthening health care undertakings, lifting the national physical quality.