China’s pension system reels 60 million new individuals

Presently, 762 products are offered in the new pension system.

Over 60 million Chinese individuals have signed up for a private pension account after the introduction of the system back in late 2022, latest data showed from the Ministry of Human Resources and Social Security.

Launched in November, the system is government-supported, voluntary, and market-oriented, and it was initially available to qualified citizens in 36 pilot cities, including Beijing, Shanghai, Guangzhou, Xi'an, and Chengdu.

This system allows Chinese citizens to contribute up to 12,000 yuan (~$1,687) annually to individual pension accounts to purchase designated old-age financial products. 

Currently, 762 special products are available within the private pension system: 465 saving products, 192 fund products, 82 insurance products, and 23 asset management products.

Data indicates that the highest interest in opening these accounts comes from middle and high-income individuals aged 31 to 40, who are motivated by retirement preparation and tax incentives.

China's old-age insurance system consists of three pillars: the national basic old-age insurance, enterprise and occupational annuities, and commercial old-age financial products, including the private pension system. 

The ministry plans to further expand the coverage of the private pension system in the future.