Core Insights - The aging population in China is accelerating, with projections indicating that by 2024, the population aged 60 and above will reach 310 million, accounting for 22% of the total population [2]. - The development of pension finance is crucial to address the needs arising from this demographic shift, yet it currently does not fully meet the demands of an aging society [1][2]. Group 1: Current Status and Challenges of Pension Finance - By 2035, the population aged 60 and above in China is expected to reach 422 million, representing 30.7% of the total population, indicating a shift into a severe aging phase [2]. - The pension finance system includes three pillars: basic pension insurance led by the government, enterprise annuities, and personal savings plans, with 1.07 billion people covered by basic pension insurance by the end of 2024 [2]. - The pension service finance sector is still in its early stages, with long-term care insurance and pension target funds developing rapidly, while other products lag behind [3]. - The pension industry finance market size reached 9.4 trillion yuan in 2022, with expectations to exceed 20 trillion yuan by 2027, highlighting significant growth potential [3]. Group 2: Policy and Regulatory Framework - Recent policies have been introduced to promote the development of pension finance, including the 2016 guidelines for financial support of the pension service industry and the 2023 Central Financial Work Conference emphasizing the strategic importance of pension finance [4]. - Multiple regulatory bodies, including the Ministry of Human Resources and Social Security and the People's Bank of China, collaborate to ensure the safety and liquidity of pension funds [4]. Group 3: Key Issues Facing Pension Finance - The pension finance system faces a supply-demand imbalance, with projections indicating that by 2028, the basic pension insurance will experience a deficit [4]. - The low coverage of enterprise annuities and the slow development of personal pensions hinder the ability to effectively supplement pension funding gaps [4]. - The pension service finance sector struggles with product innovation and meeting the diverse needs of the elderly population [4]. Group 4: Role of Patient Capital in Pension Finance - Patient capital aligns with pension finance in terms of investment strategies and social responsibility, focusing on long-term stable returns and improving the quality of life for the elderly [5][6]. - Patient capital can provide substantial long-term funding necessary for the development of the pension industry, with a significant portion of pension finance needing to come from stable, long-term sources [6]. - The integration of patient capital into pension finance can help balance the uncertainties and return demands associated with pension industry projects [11]. Group 5: Pathways for Promoting Patient Capital and Pension Finance Integration - Optimizing the institutional environment is essential to strengthen the support of patient capital for pension finance, including expanding the coverage of the second and third pillars of the pension system [15]. - Establishing a multi-layered pension finance support system can facilitate the penetration of patient capital into pension finance [15]. - Encouraging financial innovation in pension products can attract more long-term savings into the capital market, enhancing the scale of patient capital [16].