The Research on the Development Status and Key Issues of Personal Pensions in China

Abstract

China’s rapidly aging population presents profound long-term challenges to the sustainability, inclusiveness, and adequacy of its pension system. As the traditional public pension framework faces mounting fiscal pressure and coverage limitations, the development of a robust personal pension system has become increasingly urgent. This study comprehensively examines the current status, structural constraints, and future prospects of China’s personal pension initiatives. By drawing on comparative insights from international models such as the U.S. 401(k), Germany’s Riester Pension, and Japan’s NISA system, and combining them with empirical domestic data, this research identifies several core obstacles—including limited public awareness, insufficient incentives, a narrow range of investment products, and fragmented regulatory oversight. Although recent policy reforms have laid foundational groundwork, participation rates remain low, and contributions often fall short of policy ceilings. The study proposes a multidimensional strategy to address these issues, including targeted financial education campaigns, product diversification (e.g., inclusion of ESG and green assets), the use of blockchain to enhance transparency and trust, and intergenerational transfer mechanisms to boost long-term participation. These reforms aim not only to improve retirement security but also to contribute to broader national goals such as common prosperity, financial resilience, and carbon neutrality.