China promotes private retirement savings
Tuesday, 05 18 2021, Category: Insurance and Reinsurance, Country: China
China will soon launch a new pilot program for private pension funds as part of efforts to overhaul its strained system for retirement savings.
The country’s top insurance regulator proposed a new product after policymakers vowed to make private pension funds the crucial “third pillar” of the national pension system, as a number of officials and economists worry about the financial sustainability of the current state-dominated system, warning that it might soon run short of funds.
The “special commercial pension insurance” program will be tested out in East China’s Zhejiang province and the southwestern municipality of Chongqing starting on June 1, according to a notice (link in Chinese) Saturday from the China Banking and Insurance Regulatory Commission.
The program will allow workers to open their own individual pension accounts at one of six participating insurance companies, which include PICC Life Insurance Co. Ltd., China Life Insurance Co. Ltd. and Taiping Life Insurance Co. Ltd.