By Douglas Appell
Source: Pensions & Investments
China’s State Council on Thursday unveiled the outlines of a long-awaited framework for a voluntary private pension system as the third pillar of the country’s retirement safety net.
Under the plan, participants will be able to contribute a maximum of 12,000 yuan ($1,885) a year to personal pension accounts, with preferential tax policies to encourage participation. The scale of the coming tax breaks wasn’t specified.
An announcement on the China Securities Regulatory Commission website under the heading “Opinions of the General Office of the State Council on Promoting the Development of Individual Pensions” said the funds in personal pension fund accounts can be used “to purchase financial products that meet the requirements of different investors, such as bank wealth management, savings deposits, commercial pension insurance, and public funds.”