China’s pension industry continued to make strides in 2019. Some of the fundamental developments, including opening up to foreign entrants, additional use of professional managers, and the beginnings of a centralised operating model, give hope for sustained longer-term development.
KPMG’s fourth annual report tracking developments in China’s pension industry updates and builds on our research in China’s pension industry.
There have been several significant developments over the last 12 months demonstrating that both government and the broader Chinese public are paying greater attention to the pension system.
Various indicators suggest healthy growth prospects, improving investment returns, growing participation and diversity. However, the industry must overcome a host of challenges, and new realities mean all stakeholders must rethink their strategy.
China’s pension system will continue to experience rapid and often long-lasting changes. As a sustainable pension system is built with the collective effort of government, employers, providers and individuals, we expect Chinese retail customers to take a more proactive role in managing their pension money. Pension managers will need to be ready to meet their unique demands.