You Jun, Vice Minister of the Ministry of Human Resources and Social Security, said at a press conference that among the three levels of my country's current pension insurance system, the system of basic pension insurance as the first level is basically complete, including employee pension insurance and urban and rural residents' pension insurance. The platform currently reaches nearly one billion people.

As the second level of enterprise annuity and occupational annuity systems, they have been initially established and gradually improved. Currently, they cover more than 58 million people.

The third level personal pension system has not yet been introduced.

The overall consideration is to establish a personal pension system based on the account system, with individual voluntary participation, national finance providing tax support, and market-oriented investment and operation of funds, which is being launched in full swing.

So, what is a personal pension system?

In fact, each person establishes a pension account, and this account records personal basic information and asset information.

Then the individual transfers part of his salary to this account and saves it, where he can invest to increase his asset accumulation.

The difference from depositing your own money in the bank is that the state will provide tax incentives for the funds in this account; the difference from current social security is that now the money is handed over to a big plate for everyone to use together. For personal pensions, it is the money you pay.

Your own, no one else can use it.

?What benefits will personal pensions bring?

1. Increase the proportion of financial asset allocation. The establishment of a personal pension system will guide individuals to allocate assets into financial assets, optimize the asset allocation structure, increase the rate of return on assets, help individuals accumulate pension wealth, and improve the level of pension security.

2. Reduce personal financial investment risks. Personal pension accounts generally provide different investment plans, and individuals can choose investment plans independently based on the risks they can bear.

The China Banking and Insurance Regulatory Commission will formulate standards for pension financial products, regulate the development of the pension financial market, and reduce personal pension fund investment capital market operations under financial supervision.

This method of entrusting financial institutions to invest through personal pension accounts reduces the risk of income fluctuations and uncertainty caused by direct investment in the capital market by individual residents.

Third, cultivate institutional investors. Personal pension funds are important long-term investors in the capital market. They can continuously provide "living money" to the capital market, help cultivate institutional investors, and promote the healthy development of the capital market.

?What do you want to say about this?

Feel free to tell me in the comment area.