This is the 11th in a series of stories about China’s once-a-decade census, which was conducted in 2020. The world’s most populous nation released its national demographic data on May 11, and the figures will have far-reaching social policy and economic implications.

Read also China population: state pension fund under pressure from ‘unprecedented challenge’ as nation gets older

Some of China’s biggest insurers are relishing the opportunity to unlock US$15.3 trillion of private savings, the size of the world’s second-largest economy, as authorities pushed for private retirement products to help ease the burden on state pension system.

Read also China Population and Development Studies

The China Banking and Insurance Regulatory Commission (CBIRC) on Saturday announced a pilot programme to foster endowment plans offering stable returns over 10 years post retirement, making it part of the third pillar in China’s pension system, on top of state-run schemes and corporate annuities.

Read also The transition of financial services to ESG and green finance

The one-year trial will take place from June 1 in the eastern province of Zhejiang and the city of Chongqing, according to the CBIRC statement. Six companies will participate in the programme, namely China Life Insurance, People’s Life Insurance, Taiping Life Insurance, China Pacific Life Insurance, Taikang Life Insurance and Xinhua Life Insurance.

Chinese households held 98.5 trillion yuan (US$15.3 trillion) in local bank deposits, compared with the nation’s gross domestic product of 100 trillion yuan in 2020. The cash is parked “mostly in short-term products without pension characteristics,” Xiao Yuanqi, vice-chairman of the CBIRC, said at a forum last month.

Read more @SCMP