Recently, five departments including the Ministry of Human Resources and Social Security jointly issued a notice clarifying specific operational measures regarding the conditions and methods for receiving personal pensions, effective from September 1.

The personal pension system is an important institutional design of the “third pillar” in China’s pension insurance system.

Why were adjustments and improvements made to the policies related to personal pension withdrawals?

What changes have occurred in the circumstances and application channels for receiving personal pensions?

After withdrawing a personal pension early, can one continue to make contributions?

What changes have been made to the withdrawal conditions?

Three new conditions added

What changes have been made to the conditions for applying to receive a personal pension? Previously, there were three conditions: reaching the age to receive the basic pension, complete loss of working capacity, and settling abroad. This time, three new conditions have been added to these. This means there are now six conditions under which one can apply to receive a personal pension↓

Personal pensions come with tax benefits and are locked in for retirement savings, dedicated specifically for old age. This money is saved exclusively for retirement. Therefore, on one hand, the government provides tax incentives, allowing pre-tax deductions during contributions, mainly to encourage people to contribute and participate in personal pensions. On the other hand, this means that early withdrawals are not allowed arbitrarily. However, before retirement age, people may inevitably face unexpected events, such as serious illness or job loss. In such cases, it is necessary to prioritize current urgent needs.

Changes in application channels

What has been added?

In addition to changes in withdrawal conditions, what changes have occurred in the application channels? It is understood that, in addition to applying through the bank where the personal pension fund account is opened, the notice adds two types of application channels:

National unified online service portals such as the National Social Insurance Public Service Platform, electronic social security card, and the Palm 12333 App

The social insurance agency at the location of the participant’s current basic pension insurance relationship

Experts believe this reform measure will make it more convenient for the public to apply for personal pensions through multiple channels.

What is the process for participants to receive personal pensions?

The personal pension system was first implemented in 36 cities (regions) in November 2022 and has been fully implemented nationwide since December 15, 2024.

It refers to a system supported by government policies, voluntarily participated in by individuals, operated by the market, and serving as a supplement to the pension insurance function. It operates on an individual account basis, with contributions entirely borne by the participant, who can independently choose to purchase qualified financial products such as savings deposits, wealth management products, commercial pension insurance, and public funds. It follows a fully accumulated model and enjoys tax incentives according to relevant national regulations. The annual contribution limit is 12,000 yuan, and contributions can be made monthly, in installments, or annually.

So, if we meet the withdrawal conditions, how do we receive the personal pension?

The notice clarifies that participants can apply to receive personal pensions through channels such as the National Social Insurance Public Service Platform and other national unified online service portals, the bank where the personal pension fund account is opened, or the social insurance agency at the location of their current basic pension insurance relationship. The application will be verified by the social