The country's banking and insurance regulator reported that more than 24 million private pension accounts have been opened since China announced in November last year that it had introduced its private pension scheme to complement the country's old-age insurance mechanism.
The China Banking and Insurance Regulatory Commission said that in November 2022, banking and insurance institutions launched savings, wealth management products, commercial pension insurance and other financial products for individual retirement account holders.
Under the private pension plan, applicants who can collect up to 12.000 yuan (approximately $1.740) annually and benefit from tax incentives can open their own individual retirement accounts. For this reason, China has also created special old-age funds. The China Banking Asset Management Record and Custody Center said the country announced the first batch of seven individual retirement wealth management products on Feb.
China has a three-pronged old-age insurance mechanism that covers national basic old-age insurance, corporate and professional pensions, commercial old-age financial products, and a private pension scheme.