China’s Nationwide Private Pension Announced

China’s nationwide private pension scheme was fully implemented starting December 15, 2024, after a two-year trial run in 36 major cities. This program is a government-initiated and regulated scheme designed to complement the existing public pension system. This is an individual banking product, and employers would not play any role in the administration and/or contributions to these pensions. If employees are interested in supplemental pensions. If employees are interested in supplemental pensions, you can point them to this website..

China’s Nationwide Private Pension

Eligibility – The scheme is open to all Chinese employees covered by the nation’s basic pension insurance system.

Voluntary participation – Employees can voluntarily open private pension accounts at designated commercial banks.

Contribution limit – Participants can deposit up to 12,000 yuan (approximately $1,650) annually into their private pension accounts.

Flexibility – Contributions can be made monthly or yearly.

Tax benefits – The scheme offers tax incentives to participants.

Investment options – Participants can use the funds in their accounts to purchase various financial products, including wealth management products, savings deposits, commercial pension insurance, public funds, and equity index funds.

Complementary system – This private pension scheme serves as a supplement to the existing pension system, which includes basic old-age pension and enterprise annuities.

Market-oriented operation – The scheme is operated in a market-oriented manner with support from national policies.

If you need support with your employee benefits in China, please contact Asinta, and we will put you in touch with the local experts at Ximco.