Advancing China’s elderly care initiatives and developing the silver economy are pivotal to the nation’s overall development and the well-being of billions of people. Old-age finance encompasses a range of financial activities that utilize a mix of financial tools such as credit, insurance, bonds, equity, and wealth management, aiming to meet the diverse elderly care needs of social members and support the development of silver economy. These activities include pension management, financing for the silver economy and risk management, the development of pension financial products and services, and the protection of financial rights of elderly groups. Developing old-age finance is critical for fostering a virtuous cycle of high-quality development in China’s financial and elderly care sectors. To thoroughly implement the strategy of the Communist Party of China (CPC) Central Committee and the State Council on addressing population aging and put into practice the Opinions of the General Office of the State Council on Developing the Silver Economy to Enhance the Well-being of the Elderly (Guobanfa No.1 [2024]), the following guidelines are hereby proposed to accelerate the establishment of a sound old-age finance system and make significant strides in old-age finance.
I. General Requirements and Objectives
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the guidelines of the 20th CPC National Congress, the second and third plenary sessions of the 20th CPC Central Committee, and the Central Financial Work Conference. Adhering to a people-centered development philosophy, we will focus on improving the system and enhancing people’s well-being, while continuing to increase resource input in old-age finance, so as to advance China’s elderly care initiatives, support the high-quality development of the silver economy, and effectively contribute to the national strategy of addressing population aging.
—Take differentiated measures. We will enrich and innovate financial products tailored for different age groups and elderly populations, offering targeted and efficient old-age financial services.
—Adhere to market principles and the rule of law. We will meet the reasonable financing needs of the elderly care sector based on principles of controllable risk and commercial sustainability to ensure its long-term and sound operations.
—Adopt a goal-oriented approach. We will develop a multi-tiered and diversified old-age finance system and continuously enhance service capabilities to foster a virtuous cycle of high-quality financial and elderly care development with Chinese characteristics.
By 2028, the old-age finance system will be established in basic terms, with a more diverse range of pension financial products and services, increased public awareness of old-age finance, and a significantly enhanced supply of old-age finance, effectively improving people’s well-being. By 2035, the effects of various old-age finance policies will be fully observed, pension financial products and services will be more targeted and efficient, pension fund investment management will be more mature and stable, and a virtuous cycle of high-quality development in China’s financial and elderly care sectors will be largely achieved.
II. Tailoring Financial Products and Services to Meet the Old-age Finance Needs of Different Populations at Different Stages
(1) Providing diversified pension financial services for different elderly groups. We encourage financial institutions to innovate financial products and offer tailored services to elderly individuals at different stages of aging and with different characteristics. For fully independent seniors, financial institutions are encouraged to expand the range of financial supply related to healthcare, culture, tourism, sports, and entertainment, and to develop insurance products, such as senior travel insurance and accident and health insurance, to cater to the activities of the elderly, thereby promoting greater social engagement. For semi-independent seniors, financial institutions are encouraged to develop products that align with healthcare, elderly care, and other support services, support the development of home-based and community-based elderly care services, and streamline old-age finance procedures to ensure greater convenience in their daily lives. For seniors who are disabled or suffer from dementia, efforts should be made to increase financial support for elderly care institutions, rehabilitation hospitals, integrated medical and elderly care facilities, nursing homes, and palliative care facilities in accordance with laws and regulations. Financial institutions are also encouraged to design trust products tailored to the specific needs of elderly care, and to innovate and optimize insurance claims conditions and processes to ensure a life with greater dignity.
(2) Supporting individuals in preparing for retirement through pension savings and financial planning. We will raise awareness among younger generations about the importance of retirement preparation, actively foster the philosophy of old-age finance among the public, and increase understanding of and public participation in old-age finance. Efforts will be made to develop investment advisory teams that provide old-age finance consulting and planning services, including assessing individuals’ pension funding needs based on their financial status and anticipated retirement needs and designing asset allocation plans accordingly. Financial institutions are encouraged to develop pension financial products that are attractive, stable, and profitable to cater to the preventive and long-term pension needs of middle-aged and younger individuals based on their wealth management habits, consumption patterns, and income. These institutions are also encouraged to innovate diverse financial products, including dedicated pension savings, commercial insurance annuities, pension wealth management, and pension target funds, to meet the personalized retirement needs of individuals with varying levels of risk preference.
(3) Increasing financial resource support for elderly care in rural areas. We will promote the development of simple, efficient, and cost-effective pension financial products to address the specific needs of rural populations for increased pension savings and easy access to financial services. To provide financial support for the rural revitalization strategy, we will optimize services such as cash withdrawal with bank cards and provide financial services in villages so that rural elderly populations have access to essential financial services, including pension inquiries, deposits, and withdrawals. Efforts will be made to direct more financial resources to rural areas to support the development of rural-specific elderly care industries, such as providing elderly care services for people sojourning in rural areas. We will also promote the construction of elderly care facilities and the deployment of network in rural areas, aiming to close the gaps in elderly care services in these regions.
III. Increasing old-age finance Supply and Expanding Financing Channels for the Silver Economy Sector
(4) Improving the service and management systems of financial support for the silver economy. We encourage banking financial institutions to establish dedicated old-age finance business units, specialized branches, and other old-age finance-focused entities. We will also support these institutions in developing specific pension credit policies in line with their functions and positioning and offering preferential treatment in resource allocation, credit approval, internal funds transfer pricing, and performance appraisal to effectively motivate branches and primary-level personnel, aiming to significantly enhance financial support for the silver economy.
(5) Increasing credit supply to support the development of business entities and industry clusters in the silver economy. We encourage banking financial institutions to analyze the development trends of elderly care services and the business forms of the silver economy in an in-depth way, innovate financing service models, and increase credit support for the supply of senior products and services, the construction of elderly care infrastructure, age-friendly renovations, and the design and development of smart elderly assistance devices. Financial institutions are encouraged to proactively align with the development plans of metropolitan areas and city clusters and provide financing services and intellectual resource support to enterprises within silver economy industrial parks based on their positioning and business strengths. We also encourage financial institutions to support the cultivation of leading enterprises in the silver economy in pilot regions, develop financial products and services tailored to the specific characteristics and needs of various business entities, and assist private enterprises in participating in the silver economy in an in-depth way. Furthermore, we will explore financing support models for the entire silver economy industry chain on the premise that risks are controllable. We will also support banking financial institutions in innovating credit products with land use rights, real estate with clearly defined property rights, elderly care facilities, and other fixed assets acquired by business entities in the elderly care services sector as collateral, or with accounts receivable and intellectual property as pledge, while ensuring compliance with laws and regulations, controllable risks, and the preservation of the nature and use of elderly care institutions.
(6) Intensifying direct financing support for the silver economy. We will support representative large silver economy enterprises with mature business models and stable operating performance in listing on the main board. We will also assist eligible small and medium-sized enterprises in the silver economy in listing or raising funds on the ChiNext Board, Beijing Stock Exchange, and National Equities Exchange and Quotations. For eligible listed silver economy enterprises, we will support their refinancing and mergers and acquisitions through share issuance and other methods. We will utilize regional equity markets to assist non-listed silver economy enterprises with non-public offerings and the transfer of securities. We will also support relevant business entities in raising funds by issuing corporate debenture bonds. We will give full play to the role of professional bond credit enhancement institutions, such as China Bond Insurance Co., Ltd., to enhance the credit of bonds issued by small and medium-sized silver economy enterprises. Moreover, we will explore asset securitization in the silver economy sector and the penetration and calculation of securitized assets in a cautious and orderly manner in compliance with laws and regulations, and on the premise that risks are controllable.
(7) Expanding diversified funding sources. We will study and introduce financial bonds dedicated to elderly-care-specific and elderly-care-themed bonds, with the funds raised primarily directed to elderly-care-related sectors. Various forms of capital are encouraged to actively allocate equities, bonds, and index funds related to the silver economy in a scientific manner while complying with laws and regulations. We will also encourage financial institutions to enhance financing support and comprehensive service for the silver economy through various channels. We will support insurance companies in making scientific arrangements and reasonable plans for the development of elderly care communities and service institutions, with controllable risks and financial sustainability, on the premise of sticking to their functions and positioning, complying with laws and regulations, keeping risks under control, and ensuring financial sustainability. Additionally, we will guide private capital to invest in industries related to elderly care.
IV. Improving the Financial Security System to Promote Growth of Wealth Reserved for Retirement
(8) Vigorously developing the three pillars of endowment insurance, namely national basic old-age insurance, enterprise and occupational annuities, and commercial or private old-age financial products and pension plans. We will improve policies for the investment of basic old-age insurance funds and guide provinces to appropriately expand the scale of entrusted investment of these funds. We will gradually broaden the scope of institutions involved in the investment and operation of basic old-age insurance funds, increase the variety and number of fund managers, and include more qualified pension management institutions in the pool of fund managers for basic old-age insurance funds. We will promote the quality and expand the scope of enterprise annuities, and encourage eligible and willing enterprises to establish such schemes. We will fully implement the private pension scheme nationwide, gradually diversify the assets qualified for investment by private pension funds, and ensure the effective implementation of relevant tax policies. Financial institutions will be supported in developing exclusive, long-term private pension products that meet participants’ needs and offer reasonable returns. We will also support commercial banks offering private pension services in developing exclusive private pension savings products. Moreover, we will improve the early withdrawal mechanism for private pensions to meet the special needs of participants.
(9) Further promoting the innovation of commercial insurance annuity products. We will support insurance companies in leveraging their strengths in protection against risks arose after retirement and long-term pension fund management, to develop innovative products that are easy to enroll in, have reasonable terms, provide appropriate coverage, and ensure safety and stability. We will encourage insurance institutions to integrate insurance products with healthcare and elderly care services, incorporating preventive healthcare, health management, doctor visits, hospital beds for home, home-based medical services, rehabilitation, and nursing for the elderly into the coverage. We will advance the pilot program for converting the liability of life insurance into commercial long-term care insurance and explore comprehensive pension finance solutions that integrate medical care, nursing, rehabilitation, healthcare, and home-based services. We will actively promote the development of commercial health insurance and other insurance products that address the health risk protection needs of the elderly. Efforts will also be made to facilitate information sharing between healthcare security information platforms and commercial health insurance information platforms in compliance with regulations. We will give full play to the role of commercial insurance in the multi-tiered long-term care security system and support the inclusion of care beds for home and onsite home services for senior citizens into comprehensive liability insurance products of elderly care institutions. Endowment insurance companies are encouraged to step up innovation in commercial pension products. In addition, we will promote the introduction of insurance mechanisms at the local level to provide risk protection for prepayments made by the elderly.
(10) Strengthening the design and investment management of pension financial products. We will explore and innovate pension financial products that offer stable cash flows and flexible withdrawal options. We will advance the pilot of commercial pension finance in a steady and orderly manner and expand the pilot of specific pension savings and pension wealth management products. We will moderately enhance the liquidity of pension wealth management products and, leveraging existing market and financial infrastructure, establish mechanisms for product transfer, pledge registration, and other related services in a steady and orderly manner to meet the liquidity needs of investors. We encourage trust companies to offer customized wealth management trust services, such as family trusts, family service trusts, and insurance trusts, to better support residents’ retirement planning. Qualified asset management institutions will be supported in establishing dedicated pension asset management departments. We will promote the inclusion of assets such as equity and bonds in pension asset management products and increase the weight of equity investments to improve returns. Additionally, we will support pension financial products in investing in long-term quality assets that align with the characteristics of elderly care needs, such as major national projects or the restructuring and listing of key state-owned enterprises. We will also support the establishment of multi-layered risk mitigation mechanisms for pension financial products, standardize the use of return smoothing funds, optimize valuation rules of the products, and reduce risks associated with pension fund allocation. Efforts will be made to guide enterprise annuity trustees to enhance their asset allocation capabilities and encourage various pension management institutions to establish long-term evaluation mechanisms with a minimum cycle of three years.
V. Strengthening the Foundation of Financial Services to Enhance Convenience and Security for the Elderly
(11) Improving the age-friendly financial services. We encourage banking financial institutions to arrange their outlets in a scientific and reasonable manner, and increase the number of outlets in communities with high concentrations of senior residents. We also advocate age-friendly renovations of physical outlets by appropriately equipping them with elderly assistance devices, retaining and improving manual services, and setting up dedicated service areas, green service channels, priority seats, and other facilities to cater to elderly clients. We will urge these institutions to develop age-friendly mobile banking apps to improve the accessibility of online services to the elderly. We also encourage them to further optimize payment services to meet the needs of the elderly for paper passbooks, certificates of deposit, and cash services, improve the efficiency of cash services like pension payment, and advance the age-friendly transformation of mobile payment tools. In addition, we encourage the simplification and optimization of business processes in compliance with laws and regulations, and on the premise that the risks are controllable, to enhance the financial service experience for the elderly.
(12) Strengthening financial literacy education and consumer rights protection for senior citizens. We will use multiple approaches to intensify the promotion of basic financial and anti-fraud knowledge among the elderly to improve their financial literacy and enhance their awareness and ability to guard against telecom fraud, illegal fundraising, and counterfeit currency. We will further regulate financial marketing and promotional practices and increase penalties for actions that mislead elderly consumers by failing to fulfill the obligation of truthful disclosure, such as deliberately exaggerating returns, promising principal protection for asset management products, and engaging in implicit bundling of products. Moreover, we will regularly conduct comprehensive campaigns to address the refusal of cash payments, and impose legal penalties for such behaviors to improve the environment for cash services and cash payments.
(13) Intensifying efforts to prevent and combat illegal financial activities targeting the elderly. Efforts will be made to enhance the monitoring mechanism for online fraud prevention, provide clear risk warnings for large transfers and remittances made by elderly individuals, thoroughly inquire about the purpose of remittances, rigorously verify the identities of accompanying individuals, and guide clients to act according to their true intentions to effectively prevent fraud. We will further regulate financial innovation related to elderly care, ensure comprehensive regulatory coverage, and strengthen daily supervision and management. We will properly manage various financial activities in the elderly care sector and strictly guard against fraudulent innovation and illegal financial activities under the guise of pension finance. Furthermore, we will strengthen supervision of payments received in advance by elderly care institutions and prevent ordinary commercial activities from turning into illegal financial operations. We will also intensify efforts to identify risks and crack down on illegal fundraising activities disguised as elderly care services in accordance with the laws to safeguard the wealth of the elderly.
VI. Improving Institutional Support and Building a Long-term Mechanism for the Development of Pension Finance
(14) Strengthening organizational leadership. The People’s Bank of China (PBOC) and the National Financial Regulatory Administration (NFRA) will jointly lead relevant departments to establish an implementation mechanism for pension finance, strengthen interdepartmental collaboration and information sharing, regularly rearrange and report on work progress, study and address challenges, and promote policy implementation. Provincial branches of the PBOC, local offices of the NFRA, and other relevant departments should strengthen provincial-level coordination to ensure the thorough implementation of policies. Financial institutions are urged to establish pension financial service working groups led by senior officials, designate a leading department, develop action plans, and coordinate efforts to ensure the effective implementation of pension finance policies.
(15) Strengthening policy support. We will give full play to the role of monetary policy instruments in adjusting both the aggregate and the structure of credit and use special central bank lending for inclusive elderly care services to guide financial institutions to increase credit supply for the elderly care sector. We will improve the regulatory framework to align with the characteristics of commercial insurance annuities and their risk management requirements, refine regulatory rules for private pension insurance products, explore ways to optimize regulatory policies on sales practices, and enhance coordination among regulatory policies for different types of private pension products. We will encourage localities with requisite conditions to establish complementary financing support policies, to support financial institutions in expanding credit supply for the elderly care sector, especially for small and medium-sized elderly care institutions. In addition, we will implement tax incentive policies related to pension finance.
(16) Strengthening statistical monitoring and effectiveness evaluation. We will establish a statistical system for pension finance and enhance data sharing among various departments to ensure comprehensive and accurate tracking of financial support for this sector, thereby providing a solid data foundation for scientific decision-making. We will encourage local governments to evaluate the effectiveness of pension finance policies based on regional conditions, and use the results to guide financial institutions to ramp up support, thus accelerating the development of pension finance. Moreover, provincial branches of the PBOC and local offices of the NFRA are required to promptly summarize the progress and challenges in pension finance, propose policy recommendations, and submit work reports on a regular basis.
People’s Bank of China
National Financial Regulatory Administration
National Development and Reform Commission
Ministry of Civil Affairs
Ministry of Finance
Ministry of Human Resources and Social Security
National Health Commission
China Securities Regulatory Commission
National Healthcare Security Administration
December 8, 2024
