Development of an Innovative Regulatory Approach for the Pillar III Pension System Amid Population Aging - CF01 Market Survey

TA No: TA-10024

Executing Agency: China Securities Regulatory Commission (CSRC)

Project number: 56077-001

Contract name: Development of an Innovative Regulatory Approach for the Pillar III Pension System Amid Population Aging - CF01 Market Survey

Description: The proposed assignment will support China Institute of Finance and Capital Markets (CIFCM), a policy research institute under the China Securities Regulatory Commission (CSRC), to formulate core recommendations for developing a capital markets and investment regulatory framework for a Pillar III pension scheme in the People’s Republic of China (PRC). As the population ages in the PRC, the national pension (Pillar I) will become insufficient to meet the growing withdrawals by 2035. At the same time, PRC’s enterprise, and occupational pension (Pillar II) provides only limited coverage to primarily civil servants and other public sector workers, or at about 6% of the total population aged 18 years and above. In this context, the PRC government needs to urgently add an individual pension scheme (Pillar III) to cover any pension coverage shortfalls in the future, especially through attracting the existing pool of individual savings into long-term pension investments that will preserve wealth and ensure sustainable payouts. This requires a redesign of the existing pension investment policy and regulatory framework, including pension investment products and system structure, among others. The technical assistance (TA) addresses ADB’s country partnership strategy (CPS) (2021-2025) priority areas of adapting to an aging society.

Duration: 10 Month