RESEARCH ON THE DEVELOPMENT AND PROMOTION OF PERSONAL TAX DEFERRED COMMERCIAL ENDOWMENT INSURANCE IN CHINA

Tax-deferred personal insurance is a new product of the multi-tiered pension system in the People’s Republic of China. It is an important part of improving the «three pillars» of pension insurance, which transforms the pension funding system by increasing the replacement rate of lost earnings of Chinese people. The introduction of tax-deferred personal insurance summarizes Western best practices, enabling people to increase their retirement savings through the use of the least risky investment products. Feedback from pilot cities adopting tax-deferred personal insurance highlights the challenges of its implementation and suggests directions for developing the financing of China’s pension system.