News Detail

Liu Shangxi

Public Finance Research Briefing No. 24, 2022 (Total No. 759)

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Abstract

Personal pension is quite complicated. As China’s ageing accelerates and deepens, elderly care has become a strategic issue of greater importance. How to understand personal pension account and personal pension finance within the framework of elderly care? As essentially a risk issue throughout all levels and links, elderly care requires risk thinking and risk philosophy, making it crucial how the government and institutional participants predict the future risk prospects. I will elaborate my insights from two aspects.

 

I. Pension risk should be included in the macro-governance of social risks to avoid fragmented management

 

On the one hand, the pension system should contribute to granting farmers permanent urban residency.

 

On the other hand, the institutional design of preventing and mitigating the pension risk should be based on co-governance and sharing.

 

II. Developing personal pension finance is of great significance amid huge challenges

 

Firstly, the society features great expectation for and dependence on the government in terms of pension, which may hinder the development of personal pension finance.

 

Secondly, the less mature capital market exposes pension finance to a myriad of challenges.

 

Thirdly, the risk management of pension finance runs insufficiently.

 

Fourthly, inadequate financial legalization may lead to weak protection of financial consumers.

 

Fifthly, the integration of pension accounts is below satisfaction.