For policyholders, commercial pension insurance can make people have a stable income and reduce people's risks. Commercial pension insurance stipulates that there is a guaranteed income, as long as the insurance company does not go bankrupt, it must be paid, among which the life insurance company is not allowed to go bankrupt, and if there is insolvency, someone will take over the company
Why invest in pensions through pension funds?
First of all, among the three pillars of China's current pension system, the development situation is extremely unbalanced: the first pillar occupies nearly 80% of the scale, but can only meet everyone's most basic living needs, and even these, according to estimates, may fall into payment difficulties after 2035; The second pillar is the corporate-led, enterprise-based pension model, which reaches less than 30 million people and has too little coverage. At present, under the "unit + individual" shared contribution mechanism, neither the mandatory first pillar nor the voluntary second pillar can provide sufficient and effective pensions for all citizens
Therefore, from the perspective of pension system construction, it is of great significance to establish a third pillar that supplements the functions of the first two pillars. From the perspective of the relationship between residents' savings and economic growth points, the establishment of the third pillar pension is an important way to improve family asset allocation and promote long-term economic growth.
Second, the construction of the third pillar has now begun on a pilot basis. The specific practice is: through national legislation, in accordance with the principle of voluntary participation, individuals according to their own economic situation, future old-age security reserves, through the signing of trustee agreements with financial institutions, to set up personal pension accounts The government can appropriately provide after-tax incentives, financial institutions can provide diversified financial products, and the government can assume the responsibility of supervising and regulating the market. Among the financial instruments used in the third pillar, pension target funds are expected to become an important choice.
3, even if there is no advantage of personal tax deferral for pension investment for the time being Save as a new sub-category in the public fund, and it is operated in the direction of FOF pension goals
The fund is also very worthy of the majority of investors as an alternative to pension security investment, which is determined by the inherent advantages of public funds and the inherent advantages of FOF this investment method.
Pension target funds are not absolutely profitable products and may lose money in certain market stages. However, in the long run, obtaining positive returns is a high probability event, so investors should fully understand the risk-return characteristics of the product and make appropriate choices when choosing pension investment targets, combined with their own actual conditions.
Therefore, in order for our future life to be more convenient and the quality of life to be higher, we should still pay pension insurance in time to add a layer of security to our future
