Core Viewpoint - The article discusses the implementation of personal pension tax policies in China, highlighting the need for improved attractiveness and risk management tools for personal pensions as a financial product [1][2]. Group 1: Policy Implementation - The Ministry of Human Resources and Social Security announced that from January 2024, personal pensions will be subject to a 3% individual income tax on the withdrawal amount, regardless of principal or investment returns [1]. - The policy aims to provide tax benefits for individuals looking to improve their retirement living standards and offers financial institutions a new long-term funding channel [1][2]. Group 2: Market Challenges - The current low discount rates for personal pensions in China fail to adequately compensate investors for future risks, making these products less attractive [2][3]. - Investors face inflation risk, market risk, and interest rate risk, with limited options for effective risk hedging in the financial market [2]. Group 3: Investment Viability - There is concern that personal pensions may not yield positive real returns after accounting for inflation, potentially leading to a loss of purchasing power over time [3]. - The low discount rates may result in a preference for immediate consumption or other investment products over personal pensions [3]. Group 4: Recommendations for Improvement - To enhance the appeal of personal pensions, it is suggested to increase discount rates and consider issuing inflation-protected products similar to savings bonds [3]. - The tax conditions for personal pension withdrawals could be refined to reflect actual purchasing power rather than nominal amounts, ensuring that tax burdens do not exceed the real value of pensions [4].