Chinese ventures of foreign asset managers including JPMorgan, Warburg Pincus and UBS are gearing up to expand their retirement offerings, as the country officially unveiled a private pension system last week, reports Reuters. China on Friday launched its first private pension scheme in 36 cities as it grapples with a rapidly ageing population, allowing individuals to open retirement accounts at banks to buy pension products ranging from deposits to mutual funds.
The move marked the official launch of China’s version of IRA, or Individual Retirement Accounts in the United States, a private pension scheme that offers tax advantages for individuals saving for retirement.
As part of the new system, local domestic workers covered by China’s public pension insurance can participate in the private pension scheme and contribute up to RMB 12,000 ($1,680) per year to their individual accounts and receive tax benefits.
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