Matters:
On April 21, 2022, the general office of the State Council issued the opinions on promoting the development of individual pensions (hereinafter referred to as the opinions), which made it clear that individual pensions should implement the individual account system, in order to promote the construction of multi-level and multi pillar old-age insurance system and promote the sustainable development of the old-age insurance system.
Ping An View:
Core content: clearly implement the account based personal pension and enjoy preferential tax policies. The opinions put forward specific requirements on the participation scope, system mode and operation mode of individual pensions. Individual pensions are invested independently by one person and one household; The upper limit of annual payment is 12000 yuan, and the State formulates the preferential tax policy.
The development of the three pillars of China's old-age security is uneven, and policies support the development of the third pillar. Referring to American IRAs, tax preference is the key. China's first pillar has a large number of participants and high coverage, but there is potential funding gap pressure. At present, the participation of enterprises in the second pillar is limited and the penetration rate is low. The third pillar is still in the stage of exploration and establishment, which is far from the same order of magnitude as the first pillar and the second pillar. American IRAs are mainly divided into three types: traditional type, employer initiated type and rose type. In IRAs accounts, the number of households with an annual income of more than $100000 accounts for 55%. IRAs are managed by the head of household according to their own investment preferences. Mutual funds are the main flow of funds in IRAs accounts. By the end of 2020, mutual funds account for 45%, deposits from banks and other institutions account for 6%, life insurance accounts for 4% and other assets account for 45%. Referring to the pilot of individual tax extended commercial endowment insurance started in May 2018, in the short term, the policy signal significance is greater than the landing significance due to the tax superiority and taxpayers. In the long run, under the personal account system, participants can make flexible investment decisions and realize tax preference. With the timely adjustment of the payment ceiling, the third pillar will usher in great development.
The tax preference mode is to be determined, and EET mode helps "bank securities insurance" jointly promote the development of the third pillar. The opinion points out that the funds in the individual pension fund account are used to purchase financial products such as bank financial management, savings deposits, commercial endowment insurance and public funds that meet the regulations, and the participants can choose independently. Previously, the funds invested in bank pension finance, pension target fund and other products could not be deducted before tax, and only the individual tax extended commercial pension insurance adopted EET mode. After the release of the opinions, although the tax preference method and tax preference degree still need to be further refined and implemented, if the EET mode is adopted, the investment scope that can be deducted before tax will be extended from the individual tax extended commercial endowment insurance of insurance companies to the qualified financial products such as banking, insurance, public funds and securities asset management. Bancassurance will jointly promote the development of the third pillar. At the same time, the types of pension financial products will be richer and more diversified with the policy guidance. Specifically, the bank channel is sinking, and the risk of pension financial products is low and easy to be accepted. Insurance companies have both channel and product advantages, and commercial endowment insurance has both security and savings functions, making the products more attractive. Public funds have strong investment and research ability and rich management experience, but weak channel ability. It is expected to mainly cooperate with channel parties, provide products and carry out pension investment and operation. The channel capacity of securities companies is limited, but customers have high risk preference and strong service ability of equity products. They can link with their funds / asset management companies to form a closed loop of channel + product + service.
Risk tips: 1) policy promotion is not as expected. 2) Customers are not willing to buy. 3) The price of other assets fluctuates and diverts the asset allocation of individual customers.
