Young people begin to plan pension
"White Paper on Asset Allocation and Insurance Protection of Medium and High Net Worth Family" provides guidance
Presentation and Endorsement not only concerns the present of the elderly, but also the future of the young people. According to a questionnaire survey conducted by the Social Survey Research Center of China Youth Daily in 2021, 89.6% of the young people surveyed believe it is necessary to consider their pension issues from now on. With the country's promotion of the development of the third pillar pension insurance system, young people have begun to pay attention to how to configure pension insurance and how to add a sense of happiness and security to their future lives with current choices.
Recently, the "White Paper on Asset Allocation and Insurance Protection" (hereinafter referred to as the "White Paper") jointly produced by China Life Insurance Co., Ltd. (hereinafter referred to as the "China Life Insurance Company") and Peking University China Social Science Survey Center was officially released. White Paper conducts an in-depth analysis of the family portraits, asset allocation and insurance participation of high-net-worth people with certain wealth and strong purchasing power, which can provide certain guidance for young people's pension insurance planning.
The coverage rate of pension insurance has increased significantly, and commercial pension insurance has a lot of room for growth
In recent years, the degree of population aging in my country has continued to deepen. Data from the seventh census in 2021 showed that the number of elderly people over 60 years old in my country reached 260 million, accounting for 18.7% of the total population, and is expected to reach 300 million in 2025. Against the backdrop of rapid increase in the degree of aging, the Fifth Plenary Session of the 19th Central Committee of the Communist Party of China in 2020 will actively respond to the rise of population aging into a national strategy. The accelerated development of aging, coupled with the arrival of the era of low births and longevity, has made elderly care increasingly a hot topic of concern to the people.
Developing a multi-level and multi-pillar pension insurance system is crucial to promoting the development of the domestic pension system. In April 2022, the General Office of the State Council issued the "Opinions on Promoting the Development of Personal Pensions", proposing to promote the development of personal pensions, which is connected with basic pension insurance and enterprise (vocational) pensions, providing high-quality choices for the people to supplement pension assets. At the same time, the national awareness of pension is also increasing, and more and more people are beginning to pay attention to the use of pension insurance allocation as an increase in personal pension protection.
White Paper shows that the coverage rate of pension insurance for medium and high net worth families has increased significantly in recent years. The coverage rate of pension insurance for medium and high net worth households was 42.1% in 2011, and has increased rapidly since then, increasing to 79.64% in 2013, to 84.15% in 2015, and reached 92.27% in 2018. Among them, the coverage rate of commercial pension insurance is showing a continuous upward trend. The coverage rate of commercial pension insurance for medium and high net worth households was 0.92% in 2011, increased to 1.41% in 2013, increased to 2.12% in 2015, and increased to 6.44% in 2018, and there is still a lot of room for improvement in the future. Overall, my country's third-pillar insurance pension system is still relatively weak. We can gradually promote the reform of the insurance pension system, and encourage the development of personal savings and commercial supplementary insurance in the third-pillar pension system by increasing the intensity of tax preferential policies.
Among all types of commercial pension insurance, commercial pension insurance is dominated by life insurance, with the coverage rate increasing from 2.59% in 2011 to 10.1% in 2018. enterprise supplementary pension insurance coverage rate is relatively low, and it was only 2.05% in 2018. The coverage rate of other pension insurance is also at a low level, with the coverage rate in 2018 being only 1.85%. It can be seen that commercial pension insurance is becoming an important supplement to residents' pension, and there is still a lot of room for improvement in the future.
Basic social security is constantly improving, and commercial pension insurance has become an important supplement
For the people that have been covered by pension insurance, the white paper further researches and explorations on the specific implementation of pension insurance. The first pillar of my country's pension insurance system is basic social pension insurance, which is composed of employees' basic pension insurance and urban and rural residents' basic pension insurance. Establishing and improving the basic social security system to cover the entire population as much as possible will help achieve common prosperity. As of March 2021, the number of people participating in basic pension insurance in my country reached 1.007 billion, and the basic pension insurance coverage rate exceeded 90%.The white paper shows that in terms of basic pension insurance for urban and rural residents, the average insurance time for insured people is 7.63 years, and the amount of insurance that is expected to be collected per month is 197.91 yuan.
Supplementary pension insurance (annuity) is an important supplement to social basic pension insurance and the second pillar of my country's pension insurance system. As of the end of 2020, supplementary pension insurance has covered more than 60 million people. The white paper shows that among the three supplementary pension insurances, including the pension of government employees, the pension of public institutions and the pension of enterprise annuity , the main body is the pension of enterprise, with a proportion of 47.37%, followed by the pension of public institutions, with a proportion of 28.95%, and the pension of government employees accounts for 18.42%. As for the insured population, the average period of participation in supplementary pension insurance is 6.09 years, the insurance premium paid by the unit is 171.06 yuan per month, the insurance premium paid by the individual is 156.76 yuan, and the insurance premium expected to be 227.06 yuan per month.
In addition to the first and second pillars, personal savings pension insurance and commercial pension insurance constitute the third pillar that is an important part of expanding the scale of pensions and enhancing flexibility. In the long run, developing the third pillar of pension insurance, accumulating personal pension funds, and building multi-level pension reserves are the general trend in the future. The white paper shows that mid-to-high net worth families currently pay an average of 5,297.48 yuan in premiums per year, and are expected to receive an insurance premium of 6,262.2 yuan per year. Commercial pension insurance is becoming an important supplement to residents' pension and needs to be accelerated to develop and improve.
Long-term stable operation and diversified segmented services are the advantages of the insurance industry to participate in the construction of the third pillar of pension
The insurance industry has the ability to supply diversified products and services. Commercial pension insurance can meet the people's comprehensive needs for pensions in terms of safety and stability, long-term value-added, and long-term collection. At the same time, it can provide differentiated and comprehensive insurance solutions for different sub-groups and diversified pension security needs. For example, in terms of customer group dimensions, insurance companies can provide different models of pension insurance products to customers of different ages and preferences, and can also provide suitable pension insurance products to specific groups based on factors such as occupational characteristics and economic conditions.
The insurance industry has long-term fund investment management capabilities. Insurance funds have the characteristics of long investment period and high safety requirements, which are naturally in line with pension metals. In the process of long-term management of insurance funds, insurance companies have generally established an investment management system that adapts to long-term investment requirements and have accumulated strong long-term investment capabilities to manage pension funds. At the same time, commercial insurance companies have initially had the experience of laying out the medical, health and elderly care industry chain. After years of exploration, under the premise of effective risk isolation, insurance companies have leveraged their long-term and cross-cycle investment capabilities to provide long-term and stable financial support for the development of the medical and elderly care health industry chain; on the other hand, they have leveraged their professional advantages to explore the connection and development of medical services, elderly care services and financial insurance products, and better serve the people's pension needs.
insurance industry has strong asset and liabilities and solvency and comprehensive management capabilities. The insurance industry has rich experience in long-term business liability management . On this basis, it has taken comprehensive control measures for all seven major categories of risks, including quantitative management of insurance risks, credit risks and market risks, systematic management of operational risks, strategic risks, reputation risks and liquidity risks , and established a comprehensive solvency management mechanism.
So, to make a difference in serving the pension security system, how can the insurance industry be laid out? Innovating product services and optimizing the linkage of capital and debt is the development direction of the insurance industry to comprehensively deepen supply-side reform. We must actively adapt to the situation, strengthen our own capacity building, comprehensively deepen the supply-side structural reform of , and provide the people with better insurance products and services.
First, continue to increase innovation in pension insurance products and enrich product supply.In order to enrich and upgrade the supply of pension insurance products, fully stimulate the elderly care awareness of middle-aged and young people and flexible employment groups, and serve a broader customer group, the insurance industry should further innovate and explore the conditions, methods of receiving pension insurance products, income models, security and liquidity arrangements, etc., enhance the depth and breadth of the exploration of the "product + service" model, and continuously meet the people's increasingly diverse pension needs.
The second is to focus on improving long-term investment capabilities that meet the investment requirements of pension funds. Adhere to the concept of long-term, stable and value investment, take root in the real economy, serve the real economy, take multiple measures, strengthen guarantees, and build a cross-cycle investment portfolio to lay a solid foundation for providing long-term and stable returns; continue to expand the depth and breadth of investment research, further strengthen research on trend and strategic layout, build an alternative investment portfolio with a focus on the future, and create conditions for improving long-term returns; further practice the concept of responsible investment, promote long-term investment layout under the dual-carbon strategy, build a green investment portfolio that meets ESG standards, and achieve the unity of economic, political and social responsibility.
The third is to further strengthen the construction of cross-cycle asset-liability management capabilities. The ultra-long-term and diversity of pension insurance and services require insurance companies to adhere to the scientific development concept of asset-liability management coordination, continue to strengthen and update the asset-liability concept, further strengthen basic research, continuously enrich concepts and tool systems, and further strengthen the construction of asset-liability management capabilities on the basis of existing advantages. Only in this way can the insurance industry better serve the construction and development of the third pillar of pension insurance.
helps the third pillar of pension, protects people's better life with insurance
0 The arrival of the era of longevity, "old people have something to support" has become the focus of attention of the country and the people, bringing changes in people's concept of pension. Elderly care is no longer just a topic of concern to the elderly, but also attracts the attention of young people. However, relying solely on the support of the first pillar (basic pension insurance), the country faces huge pension pressure. At the same time, the second pillar (supplementary pension insurance) can only meet the pension needs of a small number of people due to its narrow coverage and limited fund accumulation. In the current uneven development of the multi-level pension security system, it is necessary to accelerate the development and improvement of the third pillar (personal savings pension insurance and commercial pension insurance), and exclusive commercial pension insurance is an important innovation among them.
China Banking and Insurance Regulatory Commission started a pilot program of exclusive commercial pension insurance in Zhejiang Province (including Ningbo City ) and Chongqing from June 2021. Six insurance institutions, including China Life Insurance Company, participated in the first batch of pilot programs. During the pilot period, China Life Insurance Company innovatively launched the China Life Xinxiangbao exclusive commercial pension insurance, which has attracted widespread attention and love from the public, especially those in new business formats. For example, in Chongqing, which is piloted, about 70% of the insured customers are new business personnel such as couriers and online ride-hailing drivers. Relying on the company's professional investment capabilities, the product brings long-term, safe and stable investment returns to customers, and meets customers' diverse and multi-level pension security needs.
As a supplier of pension insurance products, insurance companies should provide the general public with more accurate and valuable pension insurance information, and accelerate the research and development of products that meet the diverse pension needs of the people. China Life Insurance Company has implemented the national strategy of actively responding to population aging, continuously built a China Life pension system, fully leveraged the advantages of long-term insurance funds, and actively deployed multi-level elderly care services such as institutional pension and community pension through the China Life Pension Fund. In the first half of 2022, the China Life Pension Fund accelerated the integration of health care resources and continued to promote the layout of elderly care projects in strategic areas such as Beijing-Tianjin-Hebei, Yangtze River Economic Belt , Guangdong-Hong Kong-Macao Greater Bay Area , etc. China Life Insurance Company is also actively meeting the insurance protection needs of diversified elderly people. As of June 30, 2022, the company's group insurance channel underwritten more than 40 million elderly people and provides about 2.09 trillion yuan in coverage.
China Life Insurance Company stated that it will continue to adhere to the origin of insurance, develop diversified pension financial products around the needs of people's pension and health management, promote the supply of exclusive commercial pension insurance, personal income tax deferred commercial pension insurance and other products, launch a series of elderly-friendly service measures, and continue to do a good job in the construction of the "three-pillar" pension insurance system and suppliers of pension financial services, and use insurance to protect the people's better lives. (Zhu Manli, Kaifeng Branch of China Life Insurance)
