Current location:Culture Clutch news portal > entertainment
China Focus: China Rolls out Private Pension Scheme for Aging Population
Culture Clutch news portal2024-05-21 19:16:13【entertainment】6People have gathered around
IntroductionContact Us HomeNewsHighlightACWF NewsSocietyWom
- Home
- News
- People
- In-depth
- ACWF
China Focus: China Rolls out Private Pension Scheme for Aging Population
April 22, 2022BEIJING, April 21 (Xinhua) — China on Thursday rolled out a private pension scheme to complement the nation's current pension system in its latest effort to tackle the strains of an aging population.
The scheme allows Chinese citizens to contribute up to 12,000 yuan (about 1,872 U.S. dollars) annually to individual pension accounts that would be subject to closed-end management, according to guidelines released by the State Council.
The cap would be adjusted according to social and economic development as well as how the country's pension system evolves.
The funds can be used to purchase financial products that are of relatively lower risk and have a longer-term investment horizon, according to the guidelines.
Workers who currently contribute to the basic pension insurance can participate in the scheme on a voluntary basis, the guidelines said.
The government will offer tax incentives to encourage participation in the new system, the guidelines said.
The scheme will be piloted in some cities for a year before it is implemented nationwide, it said.
The private pension mechanism will complement the country's current pension system consisting of the basic old-age pension, enterprise annuities as well as commercial insurance for the elderly, offering another layer of support for the aging population, analysts said.
Policymakers in China are actively taking measures to address the issues of an aging society. According to the latest census, by 2020, the number of Chinese people aged 60 or above had reached 264 million, accounting for 18.7 percent of the country's total.
With such an aging population, government expenditure alone is hard to meet the rising obligations, and the development of the private pension scheme would help ease the strains, said Everbright Securities in a note.
In a statement commenting on the new scheme, the China Securities Regulatory Commission said that the mechanism highlights the market-oriented operation of pension funds, which are usually large in scale and long-term in investment horizon, providing stable support to the real economy.
It also said that the commission will work on the matching rules for private pensions to invest in the country's publicly-offered funds, which now run over 4 trillion yuan of pension assets.
(Source: Xinhua)
32.3KPlease understand that womenofchina.cn,a non-profit, information-communication website, cannot reach every writer before using articles and images. For copyright issues, please contact us by emailing: [email protected]. The articles published and opinions expressed on this website represent the opinions of writers and are not necessarily shared by womenofchina.cn.
Comments
Magazines
Projects
- 2023 Women Science and Technology Innovation Pioneer...
Photos
- People Enjoy Blooming Tulips in Jinan, East...
- Flowers Bloom Across China in Spring
Special Coverage
Address of this article:http://zimbabwe.tom-paine.com/news-53d699927.html
Very good!(4)
Related articles
- Why US Catholics are planning pilgrimages in communities across the nation
- Mining for local fertiliser better than buying 'blood phosphate'
- US newsman who created no
- Parliament repeals Fair Pay Agreements
- Trump accepts a VP debate but wants it on Fox News. Harris has already said yes to CBS
- Israel frees two hostages, Palestinian TV says 74 killed in assault
- Calls to get e
- New law to give police, courts greater powers in gang crackdown
- 'The Apprentice,' about a young Donald Trump, premieres in Cannes
- EDITORIAL: Plan needed so no quake victims will ever be left behind again
Popular articles
Recommended
Fresh heartache for cancer
Chile forest fires: At least 64 dead in Valparaíso region
Auckland rail crossings to be removed ahead of City Rail Link opening
Luxon 'exploring' non
The Latest
Do cheese and onions belong in a hot cross bun?
Government takes 'first steps' to speed up consent process
Week in Politics: Government's year starts with a problem
Links
- The flooded housewives of Dubai: Chanel underwater, supercars swept away and mega
- Nearly 100 Belarus political prisoners have severe medical problems, rights group says
- PSG can clinch another league title if it wins at Lorient and Monaco does not beat Lille
- Express files for Chapter 11 bankruptcy protection, announces store closures, possible sale
- Nearly 100 Belarus political prisoners have severe medical problems, rights group says
- Nicola Peltz breaks her social media silence after missing out on mother
- Victoria Beckham and her mini
- 3 Germans arrested on suspicion of spying for China, transferring info on potential military tech
- U.S. veto pushes situation in Gaza into more dangerous one: spokesperson
- Doja Cat closes Coachella in a hair