Core Insights - The current pension system in China faces dual challenges of "getting old before getting rich" and "being unprepared for aging" as the country enters a longevity era [1][2] - The core issue of the pension problem is identified as "where the money comes from," highlighting the low participation rate and high account vacancy in the third pillar of the pension system [1] Summary by Categories Pension System Structure - China has established a three-pillar pension system consisting of basic pension insurance (first pillar), enterprise annuities/professional annuities (second pillar), and personal pensions (third pillar) [1] - The low participation rate and high account vacancy in the third pillar are significant issues that need to be addressed [1] Financial Risks for the Elderly - The two major financial risks faced by the elderly are medical expenses and disability care [2] - Although pilot programs for long-term care insurance (LTCI) have been initiated in some cities, overall coverage and utilization rates remain low [2] Policy Recommendations - It is suggested to explore allowing individuals to access part of their personal pension early under strict regulation, which could enhance the system's attractiveness [1] - There is a call for accelerating the nationwide coordination of LTCI and improving the integration of basic medical insurance with commercial health insurance and LTCI [2] - The development of the pension industry should seek a balance between "high-end" services and "universal accessibility," ensuring that middle and low-income groups can achieve sustainable pension payment capabilities [2] - Policy design must consider both efficiency and equity, particularly focusing on the needs of rural and vulnerable populations [2]

Core Viewpoint - The current pension system urgently requires deeper involvement from investment advisors, with five key recommendations proposed for improvement [1] Group 1: Investment Advisory Recommendations - Introduce fund investment advisors into personal pension accounts and establish a unified management platform [6] - Allow individuals to choose investment strategies within the second pillar of the pension system [7] - Integrate second and third pillar accounts to enhance management and planning services [7] - Establish cross-industry investment advisor licenses to cover all financial products [7] Group 2: Performance of Investment Advisory Services - As of the end of 2024, E Fund's advisory services have served over 120,000 individual clients and more than 100 institutional clients, with a profitability rate of approximately 70% since the service launch [2] - The growth rate of advisory service scale reached 85% in 2024, indicating significant improvement in investor experience compared to single product users [2] - Advisory account profitability has consistently outperformed single fund products over the past one, two, and three years by approximately 27.1%, 10.9%, and 11.2% respectively [2] Group 3: Employment and Training in Investment Advisory - The demand for investment advisors is expected to create numerous job opportunities, with a projected shortage of 90,000 to 110,000 advisors in the U.S. over the next decade [3] - A training and certification mechanism for investment advisors is being developed, with a comprehensive training program lasting nine months [4] Group 4: Future Trends in Investment Advisory - The trend is shifting towards full discretionary management services, with 91.3% of managed assets in North America being under full discretionary management [5] - AI technology is anticipated to enhance the efficiency and quality of advisory services, broadening service coverage and promoting inclusivity [5]