Pension business to see explosive growth

Tax incentives, government policies set to drive expansion over 20 years

Personal commercial pension schemes, which include tax-deferred pension insurance and pension securities investment funds, will see explosive growth in China over the next 10 to 20 years, fueled by the driving force of tax incentives and government policies, a newly issued white paper by McKinsey & Company said.

China launched a pilot program last year providing individual income tax deferral on commercial pension contributions, investment gains and retirement distributions. The one year trial program took effect on May 1, 2018, and covered Shanghai, Fujian province and the Suzhou Industrial Park.