Part 4/9:
China's pension system is colossal and comprises three main pillars:
Basic Pension System: Managed by the state, this foundational system covers over 1 billion people, necessitating contributions from formal employees while remaining voluntary for informal workers.
Voluntary Corporate Pension: Similar to a 401(k) in the US, this pillar is optional for companies and caters to about 31 million individuals.
Voluntary Individual Pension: Introduced in 2022, this new pillar allows people to save through tax-sheltered accounts comparable to IRAs in the US. However, despite 60 million sign-ups, participation remains low, with less than a third making any contributions.