Generally speaking, it is relatively reliable and safe, but there are certain risks that everyone needs to pay attention to.

Pension financial management products can be regarded as an opening to observe the changes in the pension system and the capabilities of financial management institutions. With the arrival of an aging society and everyone planning for retirement, the development of commercial pension finance is not only a new business opportunity for banks and wealth management subsidiaries, but also involves thousands of households.

The vital interests of household pension investors.

1. Retirement financial management subscription craze In September this year, Xu Xin, born in the 1980s, spent 200,000 yuan on a pilot retirement financial management product.

She works in Beijing and paid attention to the release of the first batch of pension financial products at the end of last year. Because Beijing was not a pilot city at the time, she was not able to buy them.

Starting from March this year, the pilot areas for retirement wealth management products have been expanded to ten cities including Beijing, Shenyang, Changchun, Shanghai, Wuhan, Guangzhou, Chongqing, Chengdu, Qingdao, and Shenzhen. The pilot institutions have also been added to ICBC Wealth Management, CMB Wealth Management, and Everbright

Ten financial management companies include CCB Financial Management, ABC Financial Management, China Post Financial Management, Bank of China Financial Management, Bank of Communications Financial Management, Industrial Bank Financial Management, and CNCBI Financial Management.

After comparing with many parties and consulting with bank account managers, Xu Xin purchased a retirement wealth management product from a joint-stock bank’s wealth management subsidiary at an offline outlet.

For Xu Xin, after experiencing the fluctuations in the capital market in the first half of the year, she values ??the stability of financial products more.

What she purchased was an R2 medium-low risk, 5-year closed-end net worth financial product, with a performance comparison benchmark of 5.5% to 7.5%.

"Compared with other financial products, the performance benchmark is higher and there are policy support, which is the main reason for my choice." 2. Relatively stable, but not "guaranteed principal and interest". Before the pilot pension financial products, they had already appeared on the market.

Financial products with retirement theme.

A recent study by Wang Yifeng, chief analyst of the financial industry at the Everbright Securities Research Institute, and others said that there is no substantial difference between the previous pension-themed financial management and ordinary bank financial management, except that the investment period has been lengthened and the product name has "pension".

Characteristics such as relatively low lettering and risk levels still lag far behind the long-term, inclusiveness, standardization and other requirements required to truly realize the elderly care function.

In comparison, the pilot pension financial management has the advantages of pension and general welfare in terms of product design and management rates.

In terms of term design, most pilot pension financial products are products with a five-year closed period.

As the only foreign-funded pension financial management pilot institution, BlackRock CCB Financial Management issued a product with a raised amount of nearly 160 million yuan, and this is also the only product with a term of 10 years.

In addition to BlackRock CCB Financial Management, Everbright Financial also issued a 6-year pension financial product, while all other products are 5-year. Compared with ordinary financial products with a longest term of 3 years, this reflects the

Long term.

The risks of pilot pension financial management are generally low. Among the 48 pension financial products currently issued, only 2 products are R3 medium and high risk, and the rest are R2 medium and low risk.

In terms of asset allocation, fixed income is generally the main category, with equity assets accounting for less than 20%.

The wealth management subsidiary has also established risk management measures such as income smoothing funds and risk reserves.

In addition, most of the pilot pension financial products have a starting price of 1 yuan. The inclusive nature of pension financial management is mainly reflected in the rates. Overall, only a few products charge sales fees and redemption fees, while custody fees and fixed management fees are both low.

to general financial products.

At the same time, in order to meet the funding needs of investors under special circumstances, special terms are set up for the products. Those who suffer from major diseases, etc. and provide supporting documents can apply for early redemption.

3. The introduction of pilot financial management policies for the elderly to support the third pillar of elderly care is closely related to the acceleration of the aging society and the transformation of the elderly care system.

According to the different sources of pensions, China's pension system is divided into three pillars: the first pillar of public pensions led by the government, the second pillar of occupational pensions led by enterprises, and the third pillar led by individuals.

For a long time, China's elderly care system has been dominated by the first pillar, with the number of people covered reaching 998 million at the end of 2020.

However, with the arrival of an aging society, the disadvantages of the first pillar’s ??“domesticism” have gradually emerged.

Yao Yudong, chief economist of Dacheng Fund, believes that the replacement rate of the first pillar will gradually decrease in the future. To reach the target replacement rate, the coverage of the second pillar will be small, and the deficiency can only be made up by the third pillar.

4. Test the long-term capabilities of banks in financial management. "Bank financial management products are highly homogeneous, and the competitiveness of banks and their financial management companies is reflected in their brand features, product systems, and marketing systems." Yu Yaqin, a researcher at Puyi Standards, believes that banks and financial management companies should

Establish strategic development direction and differentiated development routes.

A major feature of pilot pension financial management is its robustness.

In terms of system design, pension financial products have established risk management and control mechanisms such as smoothing funds and risk reserves.

According to the product description, if the cumulative net value growth rate during the product operation cycle exceeds the lower limit of the performance comparison benchmark, a portion will be charged as an income smoothing fund.

When the annualized return rate of the product is lower than the lower limit of the performance comparison benchmark, the smoothing fund will cover the product.

“The requirements for the provision of smoothing fund risk reserves are very strict, which provides a guarantee for the product to a certain extent.” Chen Yan said.