The 14th Five-Year Plan and the outline of the Long-Range Objectives Goal 2035 have proposed a gradual extension in the statutory retirement age, which means that delayed retirement has entered the planned implementation stage in China. Although previous studies have explored the impact of reemployment on the mental health of the elderly, the conclusions are controversial. The aims of this study is to examine the relationship and mechanism between reemployment and mental health of the urban retired elderly. Based on the actual situation of China, and combined with the characteristics of Chinese family economic behavior and intergenerational relationships, this paper constructs an analytical framework with income level, downward intergenerational economic support, aging attitude, and social values as intermediary, and old-age concept as the moderating variables. Based on the data of the Chinese Longitudinal Aging Social Survey, multiple linear regression, propensity value matching, KHB mediation decomposition effect, and moderating effect were used to analyze the data empirically. The results show that: Reemployment can significantly reduce the depression tendency and promote health of the urban retired elderly, and the results are still significant after propensity score matching (PSM). The mediating mechanism shows that in the relationship between mental health and reemployment among the urban retired elderly, income level, downward intergenerational economic support, aging attitude,and social value can explain 6. 49%, 3.79%, 23. 65%, and 32.41% of the relationship, respectively. This result means that the spiritual needs of the urban retired elderly for reemployment are far greater than their economic needs. The moderating effects show that the traditional concept of “raising children and providing the elderly” will weaken the promotion effect of reemployment on the mental health of the urban retired elderly. These findings have important implications for the implementation of delayed retirement policy. In view of the above conclusions, it is recommended to increase the support for the reemployment policy of the retired elderly, create a good employment environment, and promote a positive concept of old-age.
