China rolls out private pension scheme
BEIJING, April 21 (Xinhua) -- China on Thursday rolled out a private pension scheme to complement the nation's current pension system in its latest effort to tackle the strains of an aging population.
The scheme allows Chinese citizens to contribute up to 12,000 yuan (about 1,872 U.S. dollars) annually to individual pension accounts that would be subject to closed-end management, according to guidelines released by the State Council.
The cap would be adjusted according to social and economic development as well as how the country's pension system evolves.
The funds in the accounts can be used to purchase financial products that are of relatively lower risk and a longer-term investment horizon, according to the guidelines.
The government will offer tax incentives to encourage participation in the new system, the guidelines said.
Photos
Related Stories
- How China secures pension payment through reform, state asset supplement
- Chinese vice premier stresses unified management of employee pensions
- Chinese provinces raise old-age pension payment standard: ministry
- China achieves remarkable progress in improving old-age insurance system
- China's pension fund reaps 9 pct investment return
Copyright © 2022 People's Daily Online. All Rights Reserved.
