Surge in China personal pension accounts, contributions lag
The number of personal pension fund accounts surged last year, but the scheme designed to shore up China’s pension system remained hamstrung by low contributions and a lack of investment, reports Caixin. More than 50 million people had set up personal pension accounts as of the end of last year, Zhai Yanli, director-general of the Social Insurance Management Center at the Ministry of Human Resources and Social Security, said Wednesday at an industry conference in Beijing.
The number was up from 40.3 million at the end of last June, according to data from the ministry.
However, only around one-fifth of people with personal accounts had contributed to them by the end of June 2023, according to Zheng Bingwen, director of the World Social Security Research Center of the Chinese Academy of Social Sciences. Furthermore, the average individual contribution of about RMB 2,000 ($277) was well short of the annual limit of RMB 12,000 per account.
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