A pilot program aimed at developing China’s individual private pensions market will be expanded nationwide on March 1, reports Caixin. The program, which was initially trialed last year in two provincial-level regions, will now also allow pension insurance companies to participate.
The “special commercial pension insurance” program started in East China’s Zhejiang province and the southwestern municipality of Chongqing on June 1, 2021. It allows individuals to set up their own private pension accounts with insurers, who invest the funds on their behalf. They can start taking money out after they turn 60.
Originally six major insurance companies were allowed to offer such pension products, including China Life Insurance and PICC Life Insurance. Under the expansion, 10 pension insurance companies, including state-owned National Pension Insurance that is being set up by 17 companies, will be allowed to participate.