January 2023
09Jan

China. Authorities mull measures to address aging population

Moves may include the gradual raising of the national retirement age and changes to the ways senior care is funded. Li Lei reports. As officials wrapped up 12 months of work and planned for the future at closely watched meetings that marked the end of the year, issues involving older people came under the spotlight. Data published by the National Health Commission in October showed that 267 million people, or 18.9 percent of the population, were age 60 and older. That meant...

January 9, 2023
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06Jan

Principal announces pension joint venture in China

Principal Financial Group ®, a leading global financial services provider, today announced an exciting new chapter in their ongoing expansion of their global pension footprint as Principal® acquires a minority ownership stake (17.647%) in China Construction Bank (CCB) Pension Management Co., Ltd. (CCBP), CCB’s pension business with the Social Security Fund of China (SSF). CCB will remain as the majority shareholder of CCBP with a 70% interest and an additional minority stake (12.353%) held by the SSF. Principal is the...

January 6, 2023
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December 2022
01Dec

China to launch commercial pension scheme in 10 regions from January

China will launch a commercial pension scheme along with insurance firms in 10 provinces and municipalities from Jan. 1, as Beijing develops its third pillar pension system to help its large ageing population. The scheme will supplement the private pension plan launched last week in 36 cities, allowing individuals to open retirement accounts with banks and buy financial products. Under the latest scheme, customers can open accounts at the insurance firms and invest in pension products offered by the companies, the...

December 1, 2022
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November 2022
24Nov

China. New pension program nears launch

China has almost completed all preparations for a private pension program and will soon start implementing the project, said an official at the Annual Conference of Financial Street Forum 2022 in Beijing on Wednesday. The country has rolled out supportive policies such as implementation measures, tax policies and rules for financial products in this regard after the General Office of the State Council issued its opinions on promoting the development of private pensions in April. System docking tests on the private...

November 24, 2022
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18Nov

Danish pension fund cuts China exposure

PFA, Denmark’s largest commercial pension fund, has exited two Chinese clothing manufacturers and is discussing how to handle its other China holdings amid an evolving risk environment, reports Bloomberg. The Copenhagen-based fund, which manages about $100 billion in assets, has sold out of Anta Sports and Li Ning, Rasmus Bessing, chief operating officer at PFA Asset Management, said in an interview. The holdings were worth around $4.2 million, he said. “We see China and the political development and believe that there...

November 18, 2022
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16Nov

Age for starting savings for pension drops in China

The average age for starting saving for a pension dropped sharply in China from 38 to 35, according to a survey on the prospect of China's elderly care released by Fidelity International and Ant Fortune on Tuesday, the Paper reported. Perceptions on and behaviors for retirement planning continue to improve when China's personal pension policy landed as a third pillar to support the country's pension system with the basic endowment insurance as the first pillar, and the enterprise annuity as...

November 16, 2022
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04Nov

China. Authorities release guideline for private pension plans

Five central departments released a guideline for the implementation of private pension plans on Friday, in an effort to improve the nation's pension system. The guideline, jointly released by the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration, said individuals joining the private pension plan should first open an account at State-run social security platforms or those operated by commercial banks and then open a capital account at an authorized commercial bank...

November 4, 2022
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October 2022
21Oct

Nearly 70% Chinese elderly intend to return to workplace after retirement: report

A latest report shows that 68 percent of surveyed senior citizens in China intend to return to the workplace after retirement while 30 percent of the interviewees say they have economic pressure. Experts said it's a normal and beneficial phenomenon given the slow growth of pension in recent years and labor shortages in some industries. The survey report on the post-retirement employment of senior citizens released by Chinese recruitment website 51job.com on Monday reveals that 34.4 percent of elderly...

October 21, 2022
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04Oct

Tax cuts for China’s private pension scheme likely to lure participants as financial institutions vie for market share

Tax on withdrawal of funds is down to 3 per cent from 7.5 per cent, a move likely to drive participation according to analysts However, the new tax rates may have little immediate impact given the relatively small size of the taxpayer population New favourable tax policies will encourage more people to participate in China’s forthcoming private pension scheme, analysts said, as Beijing strives to ease the financial strain of a rapidly ageing population. The tax cuts, announced last week, may also...

October 4, 2022
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September 2022
28Sep

China to allow deferrals of gov’t-levied charges, tax concessions for private pensions

China will allow market entities to defer payments of certain government-levied charges to further reduce financial burdens, and offer tax concessions for private pension schemes, according to a State Council executive meeting. At the meeting, chaired by Chinese Premier Li Keqiang on Monday, decisions were also made to enhance government services, ensure a bumper autumn harvest with improved rural infrastructure, and promote the development of the self-employment sector. Payments of certain government-levied charges and deposits will be temporarily deferred to further...

September 28, 2022
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