Date
21 August 2017

CSRC researcher urges 401(k)-style pension scheme, paper says

China should launch a tax-deferred corporate annuity scheme, similar to the 401(k) pension fund in the United States, in a move to build a multi-tier pension system, the China Securities Journal reported Tuesday, citing Qi Bin, director of the Research Center under the China Securities Regulatory Commission. To boost yields, pension funds under the scheme should be invested in the capital markets, including stocks and bonds, Qi said. The scheme will help China promote a second pillar in the country’s pension system which is widely adopted in developed countries. A standardized, state-run system, or Pillar 1, is the most important pension format in China but is causing increasing concerns due to hefty shortfalls amid a rapidly growing elderly population, the report said.

– Contact HKEJ at [email protected]

KZ/AC/CG

 

EJI Weekly Newsletter

Please click here to unsubscribe