Deputy Director Yu Hong of Our Institute Accepted Interview by “China Financial and Economic News”

Recently,the“Opinion by the General Office of the State Council Regarding Promotion of the Development of Personal Pensions” (hereinafter referred to as “Opinion”) was officially released, meaning the personal pensions system that has been given a lot of attentions has finally landed.

Deputy Director Yu Hong of our institute accepted interview by reporter of the “China Financial and Economic News” over the personal pensions system and indicated that “On one hand, China’s aging process has been continuously accelerated; on the other hand, the tendency of sub-replacement fertility is gradually showing, overlapping of the two factors has brought quite a lot pressure on China’s elderly security system.” She told the reporter, from this perspective, mining the potential in the existing social security system is one of the important considerations in issuance of personal pensions system. “For establishment of a multi-level elderly security system, none of the ‘Three Major Pillars’ is dispensable, the “Opinion” issued at this time established the top design of personal pensions system, and proposed policy framework.”

Different from the characteristics of the first pillar as the endowment insurance for being mandatory and the second pillar as emphasizing on enterprises as the entity, personal pensions system will be voluntarily participated by individuals and implement total accumulation. Therefore, how to mobilize the initiative of personal participation should be one of the priorities in policy design by the authorities of taxation, finance, banking and insurance regulatory commissions, and will be the key to whether the third pillar is able to truly ‘stand’ or not.” Yu Hong said.

Yu Hong believed that in order to further enhance demand and the initiative of participation, and expand the overage by the system, besides tax preferences, the financial institutions of banks, insurance, fund, etc. shall also flexibly release more preferential measures. She also stressed that the savings in personal pension accounts are all the “Elderly Support Money” of common people, the participating institutions shall realize the preservation and increase of value of pensions under the preconditions of controlling risks and guaranteeing the security of products.