Shanghai unveils pilot scheme for private sector pensions Shanghai unveils pilot scheme for private sector pensions

Shanghai unveils pilot scheme for private sector pensions
23 Apr 2018

Shanghai is launching a pilot programme offering tax benefits to encourage the city’s aging population to buy commercial pension insurance from 1 May, with the aim of taking the pressure off the state.

Under the scheme, buyers of private sector pensions will enjoy a tax exemption of up to 1,000 yuan (US$159) on their monthly income. The pension must be invested in low-risk or risk-free areas and be approved by the ministry.

According to Shine, the initiative will also be launched in Fujian Province and Suzhou Industrial Park and run for one year.

China’s pension coverage is heavily reliant on state funding. Last July, guidelines were issued on the development of a commercial pension insurance system that would provide support for the commercial pension plans of individuals, families and employees by 2020.

Emma Wooll

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

Shanghai is launching a pilot programme offering tax benefits to encourage the city’s aging population to buy commercial pension insurance from 1 May, with the aim of taking the pressure off the state.

Under the scheme, buyers of private sector pensions will enjoy a tax exemption of up to 1,000 yuan (US$159) on their monthly income. The pension must be invested in low-risk or risk-free areas and be approved by the ministry.

According to Shine, the initiative will also be launched in Fujian Province and Suzhou Industrial Park and run for one year.

China’s pension coverage is heavily reliant on state funding. Last July, guidelines were issued on the development of a commercial pension insurance system that would provide support for the commercial pension plans of individuals, families and employees by 2020.

Emma Wooll

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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