(Source: China Labor and Social Security News April 2, 2025)

【Preface】As my country's population aging continues to deepen, the improvement and development of the personal pension system has become an important issue in ensuring the people's happy life in their later years. The 2025 "Government Work Report" proposes that we must "accelerate the development of the third pillar of pension insurance and implement the personal pension system."

Break the "three doors" and build a full-life cycle elderly care map

——Interview with Professor Sun Jie, member of the National Committee of the Chinese People's Political Consultative Conference and Vice Dean of the w88 online casino of Insurance of the University of International Business and Economics

Open "Product Manual" for personal pension

Reporter: my country's personal pension system has entered the stage of full implementation. What do you think is the biggest challenge facing the process of system promotion? How to improve the inclusiveness and participation of personal pensions?

Sun Jie: Starting from December 15, 2024, the personal pension system will be launched nationwide. According to the latest data, the number of individual pension accounts in my country has exceeded 70 million.

As an important pension security policy introduced by the state, the individual pension system faces three bottlenecks in the promotion. First of all, the cognitive threshold for financial products is high. The existing products involve professional fields such as bank wealth management, public funds, and commercial pension insurance. However, ordinary people generally lack relevant financial knowledge reserves, which leads to difficulties in product selection.

In response to these practical problems, improving the inclusiveness of the system requires multi-dimensional coordinated efforts. You can learn from the product manual model, establish a standardized information disclosure template, and use concise language to mark the core elements such as product applicable groups, risk levels, and profit characteristics.

First invest in your old age with a cup of milk tea

Reporter: Faced with the social reality of accelerating aging, how should ordinary people build differentiated pension reserve strategies at different stages of their lives? Please give us some advice.

Sun Jie: As my country's aging continues to deepen, how to reasonably allocate pension reserves at different ages has become the focus of social attention.

For newcomers in their twenties and thirties, I suggest adopting a strategy of continuous investment of small amounts of funds. For example, starting from the age of 25, you can save a cup of milk tea every day, with a cup of 25 yuan, which is equivalent to saving 750 yuan per month and 9,000 yuan per year.

The 40-60-year-old group should build a dual-track parallel guarantee system. The first task is to ensure participation in the first pillar of pension insurance, and the cumulative payments will take you 15 years to enjoy retirement benefits.

Cash flow management should be considered for the upcoming retirement group. It is recommended that this group choose pension annuity products with lifelong collection function, which can convert the accumulated pension into a stable cash flow of the same length as life.

Improve the mechanism to diversify longevity risks

Reporter: Do you think how do financial institutions balance safety, profitability and liquidity needs in personal pension product design?

Sun Jie: Against the background of the accelerated aging process, financial institutions face the core challenges of balancing security, profitability and liquidity when designing personal pension products. At present, more than half of the products are medium and short-term savings and financial management, and lifelong receiving products that can cover long-term pension needs account for less than 20%.

On the one hand, the people expect flexible deposits and withdrawals to maintain liquidity, but premature withdrawals will weaken the function of pension reserves; on the other hand, although lifelong payment products can withstand the risks of longevity, they put financial companies under pressure. Taking the "post-60s" group as an example, although they have the ability to allocate funds, their existing products are difficult to meet the core demands of "living until old age and receiving until old age", and lack special products that are suitable for the elderly.

To solve this dilemma, a multi-level risk dispersion mechanism is required. Through reinsurance, financial derivatives and longevity risk securitization, longevity risk is transferred to the capital market, and longevity bonds and financial derivatives are used to achieve longevity risk dispersion, transfer and sharing, which not only ensures the stable operation of insurance companies, but also enhances the motivation to develop longevity products.

Enable personal pension smart product consultant

Reporter: During this year's National People's Congress and the Chinese People's Political Consultative Conference, some representatives and deputies proposed to add investment consultants to personal pension services. This year's government work report clearly focused on the application side for the first time.

Sun Jie: Professional consultants can effectively bridge the gap in supply and demand information, and convert complex financial products into easy-to-understand planning solutions by evaluating the insured person's income level, risk tolerance and pension goals. This face-to-face service not only realizes asset allocation optimization, but also assumes the function of investor education, helping the public understand professional concepts such as compound interest effect and longevity risk.

The introduction of artificial intelligence technology has brought qualitative changes and upgrades to traditional investment advisory services. An intelligent system built on a large language model can integrate macroeconomic data, actuarial models and tens of millions of user portraits, providing decision-making support beyond individual consultants' knowledge reserves.

As the system continues to improve, personal pensions will gradually become an important pillar of the residents' pension security system. By improving cognitive level, optimizing product supply, and strengthening service support, we provide participants with sustainable pension security and asset appreciation.

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