The deep aging of the population is a long-term trend, and the development potential of the third pillar of pension insurance is enormous. Pension finance is a long-term track for the asset management industry, not a short-term trend. "At the 2026 Beijing Pension Service Industry Development Four Seasons Youth Forum Pension Finance Sub Forum held on October 9th, Guo Zhentao, President of Bank of China Wealth Management, talked about the opportunities and challenges in the field of pension finance.

From the perspective of China's three pillar structure, the first pillar has a basic pension insurance coverage of 1.076 billion people, with a coverage rate of over 90%; In the second pillar, enterprise annuity covers 33.4299 million employees, with limited coverage; The third pillar of personal pension will be implemented nationwide from 2024, and the number of account openings has exceeded 150 million, but the actual contribution and investment participation ratio is still relatively low.

Guo Zhentao stated that compared to mature economies, there is still significant room for improvement in the overall scale of China's pension system. Firstly, the current proportion of domestic pension assets to GDP is about 14%, and in most mature economies, this indicator generally exceeds 100%; Secondly, China's pension replacement rate is about 45%, while developed countries generally maintain it at over 70%. Two comparative data indicate that there is enormous potential for the growth of China's pension reserve. Relying solely on the first and second pillars is insufficient to fully meet the long-term pension security needs of the entire society. Therefore, expanding and strengthening the third pillar has become an inevitable choice.

Beijing Bank Wealth Management was established in November 2022. Guo Zhentao stated that since its opening, Beiyin Wealth Management has been striving to do a good job in the field of pension finance. Through measures such as laying a solid business foundation, keeping up with policy guidance, and polishing professional services, it has continuously improved the quality and efficiency of pension finance services.

Based on the current opportunities and challenges, Guo Zhentao stated that Bank of China Wealth Management will systematically layout its pension finance business from five dimensions: first, strengthen investment research and asset allocation, enhance cross cycle investment capabilities, and actively layout long-term assets in areas such as REITs (Real Estate Investment Trusts) and ESG (Environment, Society, and Governance); The second is to establish a comprehensive service system throughout the entire lifecycle, integrating financial planning, health management, and elderly care services to achieve segmented and phased service coverage for different customer groups; The third is to do a good job in investor companionship and brand building, popularize knowledge of pension finance, improve information disclosure, and enhance customer trust; The fourth is to empower services with digital technology, using big data and AI (artificial intelligence) to analyze customer needs and optimize elderly friendly services; The fifth is to deepen policy docking and ecological cooperation, deeply participate in the personal pension system, and jointly create comprehensive pension plans with multiple parties.

The above layout concept ultimately needs to be implemented as a full process business practice. Guo Zhentao further stated that pension finance should be managed from the source, including product design, investment operation, sales management, and backend support, to achieve smooth and healthy operation of the business.

Firstly, product design should be based on the real demands of the elderly customer group, and a layered product matrix should be built according to different age groups, income levels, and risk tolerance. Balancing long-term investment attributes with the liquidity needs of the elderly population, prioritizing stability, while lowering the threshold for ordinary residents to participate, reflecting the inclusive nature of the product. Beijing Bank Wealth Management has launched two fixed income wealth management products, Zhuoyuan 550 day and Zhiyuan 380 day, targeting the silver haired customer group, focusing on long-term returns and stable low wave operations. As of September 2026, the net asset value of the two products has steadily increased, and since their establishment, the drawdown and volatility have remained at a low level. Combining with the company's development plan and relying on the existing practical foundation of silver hair products, Beiyin Wealth Management is actively promoting the application of pilot business for pension and personal pension wealth management.

Secondly, investment operations should focus on four core points: firstly, establishing a comprehensive framework for asset allocation and strengthening the ability to manage cross cyclical asset portfolios; Secondly, we should adhere to a long-term investment perspective, avoid playing games with short-term ranking returns, and reduce the disturbance of short-term market fluctuations on investment strategies; Thirdly, we rely on multiple assets and strategies to diversify risks, strictly control credit risks, and maintain a safe bottom line; The fourth is to reasonably grasp the returns and fluctuations of equity assets, and scientifically determine the proportion of equity allocation.

Thirdly, the sales process should adhere to a two-way approach. On the one hand, strict implementation of suitability management, matching customer risk tolerance with product risk levels, and building a solid compliance bottom line; On the other hand, regular investor companionship is carried out to convey long-term investment concepts, improve information disclosure transparency, and enhance customer confidence through stable performance and professional services.

Fourthly, the implementation of business cannot be separated from a complete backend security system. One is to continuously iterate the business system, adapt to pension wealth management and personal pension business, and strengthen digital precision services; The second is to implement independent custody supervision, do a good job in valuation accounting and investment supervision, and safeguard the rights and interests of funds and customers.

(Author Hu Yanming)