China Life unveils first product for commercial pension trail program

The insurer says the product is meant to help citizens in an aging society which is predicted to grow to 480 million by 2050 in China.

China Life Insurance Co Ltd launched on Wednesday its first product designed for the commercial pension trial program in Shanghai in a move to help citizens in an aging society.

China launched a pilot tax-deferred pension insurance project in Shanghai, Fujian Province and Suzhou Industrial Park in Jiangsu Province, in May.

The scheme allows individuals to defer tax on part of their income that is used to buy commercial pension insurance until they retire and draw money from the fund.

China is becoming an aging society which poses challenges to its pension system. Industry insiders said the launch of the new tax-income deferred pensions is to encourage people to prepare for old age, and promote the balanced development of China's pension system comprising basic government pension, occupational pension, and commercial insurance pension.

As of the end of 2017, senior citizens accounted for 17.3 percent of China’s whole population, which is predicted to grow to 480 million by 2050, according to data.

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