China official proposes allowing private retirement savings accounts

By Andrei Skvarsky.

A senior official in the China Securities Regulatory Commission has proposed that individuals should be allowed to open private retirement savings accounts in addition to the current system of centralised pension deductions.

Pension system regulators would be able to provide customised investment programmes for holders of such accounts, while “the current pension system is hardly able to deal with the aging population in China,” the English online version of People’s Daily, one of China’s main newspapers, quoted commission vice-chairman Li Chao as saying.

Today employees pay eight per cent of their wages and employers about 20 per cent of their revenues into the centralised pension system. Enterprises can also voluntarily run retirement schemes for their personnel.

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