On November 30, 2020, the 18th Edition of people's Daily published an article entitled "developing pension finance and serving pension undertakings". The article pointed out that finance helps to increase the supply of pension security, which is conducive to improving China's multi-level pension insurance system, enhancing pension security capacity and meeting the diversified pension needs of the people; It is also conducive to deepening the structural reform of the financial supply side, cultivating long-term institutional investors and promoting the healthy development of the financial market. In addition, broadening the financing channels of the elderly care industry, providing it with necessary financial support, and introducing more capital to the elderly care field is also a key link in the development of the elderly care industry.

First, the data from China Fund Industry Association shows that at present, the total number of pension target funds in China has exceeded 1.48 million, basically individual investors, with a scale of more than 35 billion yuan. Investors' cognition and acceptance of this new thing are constantly improving. There are signs that finance is playing an increasingly important role in the field of pension. From a social perspective, China has introduced policies and measures to accelerate the development of the elderly care service industry and fully liberalize the elderly care service market. The construction of the elderly care service system has achieved remarkable results, and the elderly care service market has become increasingly diversified, better meeting the needs of the masses. From a personal perspective, more and more people, including many young people, began to buy various pension financial products to add a guarantee for the elderly.

Second, how should finance support and serve the cause of elderly care? For the people, the most intuitive is all kinds of pension financial products. At present, banks, insurance, funds and other financial institutions have launched personal pension financial products. For example, fund companies have provided pension target funds, and banks have launched pension financial products and pension savings products. In addition to a variety of pension annuity products and pension security management products, the insurance industry also launched tax extended pension insurance in 2018. Among them, a considerable number of financial products meet the demand and are welcomed by the market, but some have received little response. Although some pension financial products embody the theme of pension in product names, they are not significantly different from other non pension financial products in terms of terms and investment strategies. There are also some pension financial products with narrow coverage and insufficient protection, which makes consumers feel that they can't solve big problems.

Third, the pension industry is still in its infancy in China. Most pension service institutions have narrow financing channels and sometimes face capital problems. Financial institutions should fully consider the characteristics of elderly care service institutions, innovate financing methods, and lead more capital to the field of elderly care on the premise of effectively controlling risks. For the elderly care service enterprises with high degree of marketization and standardization, they can also create direct financing opportunities. With a multi pronged approach and more professional and sophisticated services, finance can play its due role in the national strategy to deal with population aging and become an important support for the elderly.

Source: People's daily