Demographic Dividend,Population Aging and Raising the Retirement Age

China’s low fertility combined with increase in average life expectancy is leading to disappearing demographic dividend and population aging crisis. In this case, we may have a policy choice to raise the retirement age. Because the disappearing of demographic dividend gradually and the reversal of labor supply and demand may be the driving force of raising the retirement age, and the payment crisis of pension system which caused by the population aging may be the pulling force of raising the retirement age. If we consider the impact of this policy on urban employment and the laborheterogeneity in current conditions, we should carry out the practical policy which raise the retirement age slowly progressive and gradually.