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China announces nationwide roll-out of private pension scheme

Xinhua, December 16, 2024 Adjust font size:

China announced on Thursday the expansion of a private pension scheme from 36 pilot cities and regions to the entire country, effective from Dec. 15.

As a supplementary pension insurance, this scheme is voluntary for individuals and operated in a market-oriented manner through support from national policies, according to a notice jointly issued by five government departments including the Ministry of Human Resources and Social Security.

The scheme allows Chinese citizens to contribute up to 12,000 yuan (about 1,670 U.S. dollars) annually to individual pension accounts.

Participants in the scheme can enjoy the preferential policy of deferred taxation, according to the notice.