Faced with a challenging demographic trajectory and a fast-aging population, reforming China’s pension system is of crucial importance for China’s government. In parallel to improving the coverage and level of the public pension system in times of tightening fiscal budgets, China also aims to develop an active and sizeable private pension market. The government attempts to catalyze this through tax exemption and policy support to encourage financial product innovation. A functioning three-pillar pension mix is sought to boost consumption in the long term and also offers opportunities for foreign companies to participate in the “sliver-hair” economy.
