Recently, the China Central Radio and Television Station News Channel broadcast “Ask to the end:The first anniversary of the launch of personal pensions,How’s the effect? ”, which reported on the design of China Life’s personal pension products and the use of pension funds.
As a pension insurance system”third pillar“Important system design, the personal pension system will be officially implemented on November 25, 2022, in Beijing, Tianjin, Hangzhou, Guangzhou, etc.36Cities and regions were the first to start. In the one year since the pilot, the number of participants in personal pensions has exceeded the number of participants in corporate annuities, promoting the development of a multi-level and multi-pillar pension insurance system and making individuals realize the importance of personal pension investments.
What is the relationship between the personal pension system and the basic pension insurance system?
Personal pension refers to a system supported by government policies, voluntary participation by individuals, market-oriented operation, and realizing the supplementary function of pension insurance.Personal pensions implement a personal account system, and the payment is entirely borne by the participant. The annual payment limit is12,000 yuanthe funds paid are used by individuals to independently choose to purchase qualified savings deposits, financial products, commercial pension insurance, public funds and other financial products, which are operated in a closed manner and enjoy preferential tax policies in accordance with relevant national regulations.
my country’s multi-level pension insurance system mainly includes “three pillars“:
The first pillar is basic pension insurance, including basic pension insurance for urban employees and basic pension insurance for urban and rural residents.Number of people currently coveredReached 1.06 billion people.
The second pillar is enterprise annuity and occupational annuity, which are established by employers and their employees and mainly play a supplementary role.
The third pillar includes personal pensions and other personal commercial pension financial services.
Li Kecheng, leader of the personal pension project team of China Life Insurance Company, introduced:
“Personal pensions are for ordinary people to establish a supplementary pension reserve for their future pensions in addition to the first and second pillars.”
What features of personal pension systems are most popular?
It is understood that in the past year since the personal pension system was implemented, what has attracted the most attention is that it canEnjoy tax benefits.According to the annual income level, individual pension participantsAnnual tax savings ranging from 360 yuan to 5,400 yuan.
Li Kecheng, leader of the personal pension project team of China Life Insurance Company, introduced to reporters:
“In the year of the pilot, the settlement interest rates of our products have remained at a level that is very attractive to consumers, with the lowest settlement rate being 4.5%. Our traditional two-way products are also designed to be as profitable as possible. to customers.”
Is it more cost-effective to contribute to a personal pension closer to retirement?
Experts point out that the accumulation of personal pensions is a long-term process. The longer the time, the more funds accumulated in the account, and the more obvious the effect of supplementing the pension function after retirement. At the same time, the products that personal pensions can invest in also tend to be long-term investments. The longer the investment period, the more obvious the benefits will be.
Li Kecheng, leader of the personal pension project team of China Life Insurance Company, pointed out:
“In the use of personal pension funds, we should pay attention to long-term stability. The regulatory authorities even have regulations that set up a long-term assessment mechanism for the management team responsible for the use of personal pension funds, and encourage the realization of long-term value maintenance and appreciation goals. .”
The first anniversary of the launch of the personal pension system
China Life released its “report card”
China Life has started early, deployed early, and planned early in the third pillar of pension business. The three major business sectors of insurance, investment, and banking have worked together in the same direction. Relying on its comprehensive financial advantages, China Life has achieved multiple “first batches” and multiple leads, and has begun “Choose China Life to open an account with Guangfa for your pension” slogan, striving to set a good example for the financial and insurance industry: After China Life issued the document from the Ministry of Human Resources and Social Security, the first order of personal pension products was quickly launched, and it was launched in 36 pioneer cities the next day (regions) have issued all orders. As of the end of the third quarter of 2023, a total of 64,200 orders have been issued, providing nearly 50,000 customers with personal pension insurance products and services; China Guangfa Bank is one of the first batch of banks to obtain personal pension business qualifications. A financial institution that has served more than 1 million personal pension customers; China Life Pension Insurance Company independently developed and launched an online personal pension planning service system, and has issued 7 commercial pension products, with an existing scale of more than 1.8 billion yuan, ranking first in the industry market share .
As a large state-owned financial institution, China Life will implement the Central Financial Work Conference’s “Pension finance” requirements, strengthen the construction of pension financial capabilities, continue to enrich product supply, improve service quality, continue to meet the financial and insurance service needs of the elderly, and contribute to the construction of a financially powerful China Life.