Pension’s Impact to the Subjective Well-being of Retirees

Abstract

The aging population is a growing concern of many countries worldwide. The change in population structure has forced governments of these countries to actively deal with this problem. Many countries’ governments are taking measures to the aging population problem, and the pension system is one important way to ensure old people’s welfare by transfer payment from other parties of the society. This paper aims to conclude and discuss the mechanism about how pension affects the subjective well-being of retirees. It is important to fully understand the implications behind pension’s impact for policy makers to make wise decisions. Researchers found that pension mainly contributes to financial security and health situation, which are two important factors affecting subjective well-being of retirees. Financial security is enhanced by increased income, so that retirees can transfer payment to other family member and increase their own consume costs. The positive impact of pension to health situation are only significant for poor population.