As our country gradually enters the aging era, how to provide for the elderly and how to ensure the quality of life in old age have become more and more topics of concern and hot discussion.

So what are the existing pension pillars in our country, and how can we carry out scientific and reasonable planning and allocation when we are young, so that we can live a high-quality retirement life that is dependent on and happy in old age?

Let’s first talk about the three major pension pillars. The first is state pension, the second is enterprise annuity, and the third is personal investment.

At present, the pension structure of most residents in our country mainly relies on the first pillar, and the second and third pillars are generally missing.

According to statistics, only about 6% of companies pay enterprise annuities for their employees.

There are also very few personal investments to supplement pensions. After retirement, most employees can only rely on retirement social security funds and accumulated savings.

And some people who don’t even have retirement funds or savings can imagine their embarrassment in old age.

So, as ordinary people, how can we prepare for retirement while we are young and have income?

We cannot dominate the second pillar because corporate annuities are not mandatory by the state for companies to pay for us.

But we can develop a third pillar.

The third pillar is to use personal investment as a supplement for future retirement so that you can live a higher-quality retirement life.

The personal investments for retirement mentioned here mainly include two types, one is commercial pension insurance and the other is pension target fund.

The pension target fund is an innovative public fund that aims to pursue the long-term stable appreciation of pension assets, encourages investors to hold them for a long time, adopts mature asset allocation strategies, and reasonably controls the risk of investment portfolio fluctuations.

On August 6, 2018, my country’s first batch of pension target funds were approved for issuance. In just three years, it is still a new thing for most people.

This week I will write another article to talk specifically about all aspects of pension target funds, as well as my insights and gains from investing in pension target funds for more than two years. Interested friends can follow me first.