Core Viewpoint - The article emphasizes the urgent need for financial innovation to address the sustainability, adequacy, and affordability challenges facing China's pension system due to increasing aging population and rising dependency ratios [1][2]. Group 1: Challenges in Pension System - The rising dependency ratio is directly linked to the accelerated aging population, which puts pressure on the sustainability of the pension system and raises concerns about the expanding funding gap under the "pay-as-you-go" system [2]. - Insufficient pension adequacy and high contribution rates are significant issues, with the average wage replacement rate for urban workers in pension insurance showing a downward trend [2]. - High contribution rates not only squeeze corporate profit margins but may also lead to behaviors such as evasion of contributions and low base participation in pension schemes [2]. Group 2: Need for Structural Reform - There is an urgent need for structural reforms to balance income and expenditure in the pension system, with a focus on building a multi-pillar pension security system [2]. - Short-term fiscal subsidies can alleviate pressure on the first pillar, while the development of the second and third pillars is essential for unlocking pension savings potential in the medium to long term [2]. Group 3: Opportunities for Personal Pension Plans - Despite being in the early stages of development, the three-pillar pension system in China has favorable factors, such as a high household savings rate of 20% and an overall savings rate of 50%, providing a solid financial foundation for personal pension plans [2]. - The demand for pension services and funds is continuously expanding due to the deepening aging population, and the government aims to guide wealth towards the pension sector through policy direction and regulatory coordination [2][3]. Group 4: Financial Innovation and Investment - The article suggests that personal pension accounts should be utilized to connect the "savings-investment-appreciation" chain, guiding long-term funds into the market to alleviate pension devaluation pressure and optimize capital market structure [3]. - The government is encouraged to accelerate the improvement of supporting systems such as tax incentives and information disclosure to create a virtuous cycle of policy guidance and market operation [3].