Silver Economy Accelerates As Personal Pension System Marks Three Years — Structural Changes Emerging

The Personal Pension System, Launched On November 25, 2022, Has Reached Its Third Anniversary. As Institutional Design Improves And Resident Participation Rises Rapidly, The Resulting Shifts In The Pension Finance Market And The Increment Of The Silver Economy Are Reshaping The Financial Industry And The Entire Pension Supply Chain.

At The Recent “China Pension Innovation And Development Seminar,” Huang Tao, Party Secretary And General Manager Of Guomin Pension, Stated That China’s Pension System Is Transforming From “Providing For The Elderly” To “Ensuring Happiness For The Elderly.” However, Structural Mismatches Between Supply And Demand Persist, Requiring Attention To Both “Availability” And “Quality.”

For A Long Period, Residents’ Pension Awareness Focused On Basic Pension Insurance (First Pillar) And Enterprise/Occupational Annuities (Second Pillar). Over The Past Three Years, With The Personal Pension System Officially Implemented, A Gradually Enriched Product Framework, And Enhanced Tax Incentives, The Third Pillar Has Become A New Choice Among Urban Middle‑Class Groups.

Multiple Experts Noted Structural Changes In Residents’ Pension Savings Behavior Over The Past Three Years. The Focus Has Shifted From “Whether Reserves Exist” To “Long‑Term Planning.”

As Banks, Insurance Institutions, And Specialized Pension Finance Companies Continue To Launch Educational Products And Retirement Planning Tools, The Spread Of Pension Finance Knowledge Has Accelerated. Residents’ Attention To “How Assets Beyond Account Balances Should Be Allocated” Has Significantly Increased. Sun Jie, Deputy Dean Of The School Of Insurance At The University Of International Business And Economics, Said That Twenty Years Ago People Worried Whether Basic Pensions Could Provide Security; Now, The Awakening Of The Third Pillar Indicates Residents Are Truly Beginning To Plan Retirement From A Life‑Cycle Perspective.

Driven By The Personal Pension System, Financial Institutions Are Accelerating Strategic Adjustments, And The Competitive Logic Of Pension Finance Is Changing. The Industry Is Shifting From Simply Selling Products To Providing Systematic, Long‑Term Solutions.

Guomin Pension Is Exploring An Operating Model Of “Light Assets, Light Institutions, Light Staffing,” Using Digitalization To Improve Efficiency And Reduce Costs, Ultimately Passing Benefits To Customers. Low‑Threshold Products Such As Pension Wallets Further Enhance Accessibility Of The Third Pillar, Reflecting A Shift From “Pushing Products” To “Planning,” With Greater Emphasis On Residents’ Whole‑Life Wealth Management Needs.

Insurance Funds, With Stable Style And Long Duration Advantages, Are Becoming Important “Stabilizers” For Pension Investment. Zhai Qingfeng, General Manager Of China Re Asset Management Co., Ltd., Indicated That Insurance Fund Returns Have Lower Volatility And Align With Pension Funds’ Pursuit Of Safety, Long‑Term Stability, And Matching Characteristics, Continuing To Provide Key Support For The Third Pillar.

Large Banks Are Accelerating The Construction Of Full‑Chain Systems Combining “Pension Finance + Services + Industry.” Han Qiang, General Manager Of The Pension Finance Department At Industrial And Commercial Bank Of China, Reported That ICBC Currently Manages Over RMB 5.8 Trillion In Pension Funds And Has Upgraded 16,000 Branches Nationwide For Elderly Accessibility, Creating More Than 6,000 Specialized Pension Finance Outlets. ICBC Aims Not Only To Provide Financial Products But Also To Become A “Trusted Consulting Gateway” For Older Adults, Offering Information Services And Resource Connections Related To Retirement.

Although Financial Products And Institutional Reforms Continue To Advance, Industry Views Hold That This Is Only One Aspect Of Pension System Transformation. With China’s Urbanization Rate At 67% And 940 Million People Living In Cities, Communities Are Becoming The “Main Battlefield” Determining Quality Of Life In Old Age. Deep Innovation On The Services And Community Fronts Is Profoundly Influencing The Development Speed Of The Silver Economy.

E Junyu, Founder Of Anxin Kangyang, Pointed Out That Nationwide Demand For Elderly‑Friendly Renovations Exceeds 110 Million Households, Yet Current Supply Falls Short Of Demand Growth. Unlike Traditional Renovations, Elderly‑Friendly Upgrades Are Not “One‑Time Projects,” But Continuous Service Systems Covering The Entire Life Cycle Of Seniors, With Business Opportunities Spanning Safety Protection, Smart Sensing Devices, Rehabilitation Aids, Home Health Monitoring, And Long‑Term Care, Attracting Significant Capital Attention.

Li Lu, Director And Researcher At The Institute Of Social Development, National Development And Reform Commission, Believes The Pension Sector Will See Integrated Development Across Services, Products, And Technology, Potentially Addressing Labor Shortages In Traditional Services. Smart Rehabilitation Aids Can Ease Pressure On Nursing Homes. “From Opportunities In Developing And Producing Mobility Vehicles For Seniors In The Automotive Industry To New Directions In Elderly‑Friendly Housing Construction, Diverse Industries Can Integrate With Aging Needs. Traditional Sectors Adapting To Pension Demands May Gain New Vitality.”