I deposit 12000 yuan into my personal pension account every year, and currently I have bought one fund and two wealth management products, both of which have positive returns. "On September 16th, Ms. Huang, who lives in Shanghai, recently told reporters that since the implementation of the personal pension system, she has been making annual deposits, which can not only offset taxes but also provide an additional pension security. Ms. Huang's participation in the personal pension system is just a microcosm of the development of China's new pillar of elderly care. At present, with the first pillar of basic pension insurance as the foundation, the second pillar of enterprise annuity and occupational annuity, and the third pillar of personal pension and commercial pension as the support, China's multi-level and multi pillar pension financial system has been basically established, and the people have more choices to accumulate pension funds. However, according to the reporter's research, the obstacles in the development of the "new pillar", such as insufficient coverage and low deposit funds, still need to be resolved. Data shows that as of the end of 2024, approximately 1.073 billion people nationwide have participated in basic pension insurance, with a cumulative balance of 8.72 trillion yuan in the basic pension insurance fund; In 2023, the monthly average basic pension for retired employees in enterprises nationwide will double compared to 2012. In addition, on the basis of the basic pension insurance, financial "new pillars" such as enterprise annuity, personal pension, and commercial pension have gradually developed, becoming the "money bags" that will meet the diversified and high-quality retirement needs of the people in the future. Data shows that as of the end of 2024, the total investment and operation scale of the second pillar enterprise annuity and occupational annuity is about 6.75 trillion yuan, an increase of over 90% compared to the end of 2020; As of the end of November 2024, over 72 million people in 36 cities (regions) have opened personal pension accounts; The market size of commercial pension business has exceeded 100 billion yuan by 2024. The flourishing of elderly care finance is actively responding to the aging population, supporting the construction of a multi-level and multi pillar elderly care finance system, and doing a good job in elderly care finance is becoming a topic of the times for various financial institutions. The use of financial instruments such as credit, insurance, and bonds to meet diversified elderly care needs is essential for doing a good job in elderly care finance. ”Yan Zhipeng, a professor at the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, told Shanghai Securities News reporters that various financial institutions are exploring the development of pension finance, but ultimately it is important to help the people make scientific and reasonable arrangements and accumulation of cross period funds, solve the problem of pension money, and build a "three pillar" pension system. In recent years, in order to enable the people to accumulate more pension funds, financial institutions have made every effort to do a good job in pension finance. For example, Agricultural Bank of China innovatively built a wealth management center for pension finance, serving 12000 new elderly customers in the first half of this year; China Life Insurance continuously enriches its commercial pension products by catering to the differentiated pension security needs of the elderly population; Construction Bank has improved the shelf of personal pension products, with over 250 individual pension products available for sale. To help individual pension investors better manage their funds, the Ministry of Human Resources and Social Security is working with relevant departments to explore the "default investment" mechanism. Yan Zhipeng stated that the rational allocation of financial assets is a "thousand person, thousand face" approach, and the introduction of a "default investment" mechanism can analyze investors' different risk preferences, cycle preferences, and return preferences. With the help of increasingly powerful AI tools, it can efficiently allocate suitable assets. Many institutions are actively laying out commercial pension plans. The person in charge of Ping An Pension Insurance told the Shanghai Stock Exchange reporter that the company attaches great importance to commercial pension business and has incorporated it into its strategic planning. It continues to promote and deploy work in key areas such as product design, system construction, sales planning, qualification application, and investment operation. At present, all preparatory work has been completed in stages, laying a solid foundation for us to obtain business pilot qualifications in the future. Although the development of the "new pillar" for elderly care has developed rapidly, there are still development obstacles such as insufficient coverage and insufficient deposit funds. Industry insiders believe that this requires more policy support from relevant departments in optimizing tax incentives, increasing deposit amounts, and enriching investment products. Improving the coverage of enterprise pension and personal pension, and providing more tax-free quotas are key measures. Guo Jinlong, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences and director of the Insurance and Economic Development Research Center, stated in an interview with the Shanghai Stock Exchange that the tax exemption limit for personal pension funds can be gradually increased by a certain proportion on the basis of 12000 yuan, and flexibly adjusted to match the actual needs of elderly care. The finance and taxation departments can explore the establishment of a dynamic adjustment mechanism for tax incentives, and regularly evaluate and adjust the tax incentives of the second and third pillar pension products based on changes in macroeconomic, population structure, and pension security needs. Yan Zhipeng suggests that women retire earlier than men, have a longer average life expectancy, have a shorter accumulation time and consume more pension funds, so more amounts can be given to women for paying personal pension funds; In addition, personal pension investment can open up investment in a wider range of high-quality public funds, REITs, and other products, including QDII products, providing investors with more choices. The core of pension security is to meet the long-term cash flow needs of customers, while transferring expected risks such as longevity, disability, inflation, and healthcare. Suggest continuously deepening the understanding of elderly care needs and increasing support for product functional innovation. ”The person in charge of Ping An Pension Insurance mentioned above said, for example, to encourage the development of more competitive floating income products and provide customers with longer-term pension funding support. (New Society)