At the executive meeting of the State Council held a few days ago, it was proposed that the individual income tax preference should be implemented for individual pensions supported by policies and operated commercially: the payer should be deducted before tax according to the annual limit of 12000 yuan, the investment income should not be taxed temporarily, and the actual tax burden of income received should be reduced from 7.5% to 3%. This means that the personal pension system ushers in a favorable tax policy. Whether it is the annual pre tax deduction of 12000 yuan, the temporary non taxation of investment income, or the significant reduction of tax burden when receiving income, more residents will be encouraged to participate in personal pension, expand the coverage of the third pillar, and have an effect on the aging of the population.
In April of this year, the General Office of the State Council issued the Opinions on Promoting the Development of Personal Pension, which made it clear that workers who participate in the basic pension insurance for urban workers or urban and rural residents in China can participate in the personal pension system. The individual pension is subject to the individual account system, and the payment is entirely borne by the participants themselves, with full accumulation.
From the perspective of the operation direction of the individual pension system, the public can use the individual pension to purchase financial products in the financial institutions that meet the regulations or their legally compliant sales channels, and bear the corresponding risks. The smooth implementation of the personal pension system can not be separated from the implementation of financial institutions. At present, China Merchants Bank, CITIC Bank and other banks have set up special personal pension pages on the client, which has attracted market attention.
Commercial banks actively participate in individual pension business, and can provide one-stop management of individual pension accounts and capital accounts for the public. In particular, mobile banking, which has a wide distribution of outlets and a high penetration rate, has natural advantages in investor education of pension knowledge, answering public concerns and prevention. At the same time, based on its own advantages in services and products, commercial banks can also better meet the diversified pension needs of the public through pension savings, pension financing, etc.
Based on its own advantages, the fund company and the bank will form certain complementary advantages in the supply and investment management of pension products. The bank has a broad customer base and professional service team, and the fund company can output investment management capabilities and product quality control services. The effective combination of the two can better help the public to manage personal pension investment assets. With the accumulation of personal pension and participation in the capital market, it will help to improve the stability of the capital market, and the equity market and pension will form a positive interaction.
Insurance companies, especially pension insurance companies, have more advantages in participating in the individual pension system. On the one hand, insurance companies can scientifically and accurately plan the pension investment layout by relying on professional actuarial technical tools such as life table and serious disease incidence table; On the other hand, insurance companies can meet the comprehensive needs of policyholders in terms of safety, stability, long-term appreciation, long-term receipt, etc. through commercial endowment insurance products, and propose differentiated comprehensive insurance solutions.
From the perspective of implementation progress, the number of participants in the personal pension system is relatively limited at the initial stage due to the impact of system promotion, pilot city restrictions, and the upper limit of individual participation, but the scale is expected to gradually increase in the future. Some institutions predict that after 5 to 10 years of development, the accumulated amount of individual pension is expected to exceed trillion yuan, and gradually become an important part of China's pension system. In addition, we can also consider establishing a dynamic mechanism to link the deduction amount with the average social wage growth index. In the future, with the increase of income level, we will dynamically increase the pre tax deduction amount.
It is worth noting that the public, especially young people, should gradually establish the concept of pension investment and actively participate in personal pension accumulation regardless of income level. In the long run, individual pension has changed from relying on basic pension insurance to "multi pillar+pension wealth reserve", and from liability type to asset type. Stable rate of return on investment and high replacement rate of pension will better provide adequate security for retirement life. (Source: Economic Daily Author: Yu Yong)