I believe many people have seen this kind of information in the past few days, personal pension contributions, tax deduction countdown.
For example, I received this message prompt from the Shenzhen social security public account:
First benefit: immediate tax deduction
What does this mean?
China's personal pension system was officially launched three years ago, supported by government policy, voluntary participation by individuals, and operated as a supplementary pension insurance system in a market-oriented manner.
For individuals, the first benefit is the ability to immediately deduct taxes.
Every year, you can contribute up to 12000 yuan to your personal pension account. This amount can be deducted from your total taxable income for the year, equivalent to a 'pre-tax deposit'.
How much tax can it help you save? The key lies in your 'marginal tax rate' (the highest tax rate applicable to your income).
Note: The maximum tax savings = 12000 * corresponding personal tax rate
For example, if your pre-tax annual income is about 200,000 yuan, the applicable individual income tax rate is 20%. If you deposit the maximum of 12,000 yuan, then you will directly pay 2,400 yuan less in personal income tax that year (3% personal income tax needs to be paid upon withdrawal).
So, how to operate the personal pension tax deduction?
After making contributions, we can obtain a payment certificate from the bank where the personal pension account was opened. Then, in the 'Individual Income Tax' APP, on the 'Deduction Reporting' page, click 'Personal Pension Deduction Information Management', scan or manually enter the personal pension data on the payment certificate, and complete the authorization to synchronize the data to the tax system. This way, during tax handling, you can enjoy the benefits of the personal tax deduction.
Please note: If you do not deposit into the account before December 31, the tax benefit for that year will be completely void. Depositing means saving money; it is equivalent to a 'opening bonus' from the state.
The second layer of benefits: establishing personal pension reserves
The second layer of benefits of personal pensions, which I find more meaningful, is that it cultivates investment and financial management habits, accumulating pension funds.
Many people ask, I have social security, why do I need to buy personal pensions?
Please imagine pension protection as a 'three-legged stool': the first leg is social security (the bottom line); the second leg is corporate annuities (unit welfare, limited coverage); and the third leg is personal pensions — this is the 'pension enhancement tool' that you build for yourself, officially encouraged.
By the end of 2024, the proportion of the population aged 65 and above in China has reached 15.6%, officially entering a 'deep aging society'. Currently, the pension replacement rate for corporate employees in China is about 45%, which is below the warning line of 55%, meaning that relying solely on social security will significantly reduce the quality of life after retirement. (Data source: Ministry of Civil Affairs, Ministry of Human Resources and Social Security official website)
Personal pensions hedge the risk of 'getting old before getting rich' through long-term, closed operations, leveraging compound interest over time.
Some designs of personal pension accounts help participants 'control their spending' to achieve forced savings; on the other hand, the account funds can be invested in self-selected pension products to enjoy the compound returns brought by long-term investments, thus preserving and increasing the value of pension funds.
The advantages of Huatai-PB's pension business
Some people may be curious and ask, after all this, what products have you bought yourself?
Why not do a regular investment, buying 2000 yuan each period, to gradually reach the annual limit of 12,000 yuan.
Why are we optimistic about the pension products under Huatai-PB? After careful analysis, we can see why.
First, Huatai-PB is a 'long-distance runner' in the field of pension management.
When selecting companies for pension products, I always adhere to the principle of 'choosing the old over the new, choosing the strong over the weak'. The deep accumulation of Huatai-PB in the pension field makes it a core benchmark I pay attention to.
• Deep Credentials: Huatai-PB has served the national social security system for over 15 years and manages a substantial scale of pensions (including social security and basic pensions).
• Leading Licenses: Huatai-PB is one of the first batch approved to issue pension target funds, one of the first to be included in the personal pension fund list, and one of the first public companies to incorporate index funds into the pension system.
• Platform-Based Strength: Huatai-PB does not rely solely on one fund manager but has built a strong 'platform-level' management system. The pension FOF team has an average of over 10 years of experience, with hundreds of billions in FOF management experience and a solid research foundation in multi-asset areas such as stocks, bonds, gold, and REITs.
Second, the performance and style of pension products: all have positive returns, an excellent report card.
Data can explain many issues. As of the end of Q3 2025, the Y shares of personal pensions under Huatai-PB have all achieved positive returns since their establishment, each with distinct characteristics and clear positioning, striving to meet the diverse needs of investors.
Data Source: Fund Q3 2025 report, as of September 30, 2025, historical performance does not represent the future.
1. Enhanced Index Series: Be the active chooser in index investing
Huatai-PB empowers its proactive research capabilities to tool-type products, striving to obtain stable Alpha (excess returns) based on tracking the index.
• Huatai-PB CSI 500 Index Enhanced Y: Since its establishment on December 13, 2024 (as of September 30, 2025), it has accumulated returns of 21.41%, compared to the performance benchmark of 22.58%.
• Huatai-PB CSI 300 Index Enhanced Y: Since its establishment, it has accumulated returns of 15.28%, compared to the performance benchmark of 17.08%.
Product features: With strong support from Huatai-PB's proactive research team, fund managers integrate proactive research and quantitative research advantages, constructing a factor matrix covering value, growth, quality, market sentiment, and other dimensions, precisely capturing the core driving variables of stock excess returns, forming continuous exploration of market effectiveness. At the same time, through strict control of single-industry and style exposures, the portfolio's drawdown is always kept within a controllable range.
2. Pension Target Date FOF (TDF): One-stop pension management
Suitable for investors who want to be 'worry-free'. This type of product will automatically reduce the equity ratio as the retirement date approaches (declining curve design).
• Huatai-PB Pension 2050 five-year holding Y: Since its establishment on 2022/11/17, it has risen by 14.73%, while the performance benchmark is 19.53%.
• Huatai-PB Pension 2030 three-year holding Y: Since its establishment on November 15, 2022, it has risen by 12.46%, while the performance benchmark is 14.25%.
Product features: scientifically bear risks. Taking the 2050 fund as an example, its equity center gradually declines from 80% in the early stages to 35% after retirement.
3. Pension Target Risk FOF (TRF): Clear risk boundaries
Suitable for investors who have a clear understanding of their own risk tolerance.
Huatai-PB Tianfu Huiying Stable Year Y: Since its establishment on 2021.10.15, it has accumulated a return of 7.04%, exceeding the performance benchmark by 1.48% (the performance benchmark during the same period is 5.56%).
Product features: Covering various risk-return characteristics such as conservative, balanced, and aggressive, with constant risk exposure. Conservative products typically have equity caps within 30%, smoothing fluctuations through multi-asset allocation, striving to achieve 'steady happiness' in returns.
For example, I chose a conservative FOF, enjoying tax benefits while pursuing absolute returns that exceed fixed deposits through multi-asset allocation.
However, if you have a higher risk appetite, you can deposit the maximum of 12,000, focusing on aggressive FOFs or index-enhanced funds with a higher equity ratio to pursue long-term growth.
Conclusion: Gain confidence for future retirement life
A personal pension is essentially a 'financial arrangement that transcends time'. Using today’s tax benefits and long-term investments to secure a foundation for future retirement living.
Today’s society is changing rapidly, and in the face of an uncertain future, we need a definite plan. Personal pensions are not only the preferred choice for current tax planning but also an indispensable 'ballast stone' in personal asset allocation.
The best time to plant a tree was ten years ago; the second best time is now. The earlier you start your personal pension account, the more you can fully enjoy the dividends brought by time. Instead of worrying about retirement in the future, start today with a scientific plan for a high-quality retirement life.
Risk Warning: Funds have risks; investments should be cautious. This material is for promotional purposes only and does not constitute any legal document. Investments involve risks, and fund managers promise to manage and utilize fund assets with integrity and diligence but do not guarantee profits or minimum returns. The performance of other fund products or fund share categories managed by the fund manager does not constitute a guarantee of the performance of this fund share. Investors should carefully read legal documents such as (Fund Contract), (Prospectus), and (Product Information Summary) to understand product information in detail. The above-mentioned Y-type fund shares are established as a separate share category for personal pension investment fund business according to the (Interim Regulations on the Management of Publicly Raised Securities Investment Fund Business for Personal Pension Investment), available only for personal pension clients to subscribe. The arrangements for subscription and redemption of Y-type fund shares, as well as fund account management, should also comply with national regulations on personal pension account management. Huatai-PB Pension 2050 five-year holding mixed Y, Huatai-PB Pension 2040 five-year holding mixed Y, Huatai-PB Pension 2030 three-year holding mixed Y, Huatai-PB CSI 300 Index Enhanced Y, Huatai-PB CSI 500 Index Enhanced Y, and Huatai-PB SSE Comprehensive Index Y belong to medium risk level (R3) products, suitable for investors whose risk tolerance assessment results are balanced (C3) and above. The other five funds belong to lower risk level (R2) products, suitable for investors whose risk tolerance assessment results are conservative (C2) and above. The rules for matching customer-product risk levels can be found on Huatai-PB's official website. When subscribing through a distribution agency, the risk rating rules of the distribution agency shall prevail. This product is issued and managed by Huatai-PB Fund Management Co., Ltd., and the distribution agency does not bear responsibility for investment, redemption, and risk management of the product. The fund names mentioned above contain the word 'pension', but this does not represent any guarantee of returns or any other form of return commitment. The fund manager does not guarantee that this fund will not suffer losses, does not guarantee that investors will definitely make profits, does not guarantee minimum returns, nor does it guarantee that market average performance levels can be achieved. FOF holding period products have a minimum holding period stipulated in the fund contract; during the minimum holding period, you will face liquidity constraints due to the inability to redeem or sell fund shares. The underlying index does not fully represent the entire stock market. The average return rate of the underlying index components may deviate from the average return rate of the entire stock market. The above index is compiled and calculated by the China Securities Index Co., Ltd. ('CSI'), and all ownership belongs to CSI and/or its designated third parties. CSI does not make any express or implied warranty regarding the real-time, accuracy, completeness, and suitability for specific purposes of the underlying index and does not bear any responsibility to anyone for any delays, omissions, or errors in the underlying index (whether or not there is negligence). CSI makes no warranty, endorsement, sale, or promotion for products tracking the underlying index and does not bear any related responsibilities. Any securities research reports or comments related to this promotional material shall not be forwarded in any form without prior written permission from the publishing institution. The viewpoints or opinions in the related research reports are for reference only and do not constitute any investment advice or consultation, or any express or implied guarantee or commitment. Readers should exercise caution when reading or referring to relevant viewpoints and opinions. Personal pension fund accounts operate in a closed manner, with conditional withdrawals; for details, please consult the commercial bank where the personal pension fund account was opened. Regular and fixed investment is a long-term investment method, but it cannot avoid the inherent risks of fund investment, cannot guarantee that investors will earn returns, nor is it an equivalent financial management method to replace savings. 'Active', 'balanced', and 'conservative' are the upper limits for equity ratios of funds, which differ from the risk levels assigned according to investor suitability during the sales process. Investors should fully pay attention to the risk levels and implications of products with different upper limit levels for equity ratios, the benchmark allocation ratios of various asset classes, and cautiously invest based on their own risk preferences and tolerance. Huatai-PB CSI 500 Index Enhanced Y was established on December 13, 2024, with fund manager Xu Yizun; since its establishment until June 30, 2025, the performance and benchmark are (%): 2.11/-1.09; Huatai-PB CSI 300 Index Enhanced Y was established on December 13, 2024, with fund manager Xu Yizun; since its establishment until June 30, 2025, the performance and benchmark are (%): 3.08/0.11; Huatai-PB Tianfu Huiying Stable Pension Target One-Year Holding Mixed (FOF) Y was established on November 17, 2022, with fund managers Cai Jianlin and Chen Si; the annual performance and benchmarks from 2023 to June 30, 2025 are (%): -1.73/-1.04, 5.09/7.25, 1.95/0.26; Huatai-PB Tianfu Yinghe Stable Pension Target One-Year Holding Mixed (FOF) Y was established on November 17, 2022, with fund managers Cai Jianlin and Li Biao; since its establishment until June 30, 2025, the performance and benchmark are (%): -1.27/-1.04, 4.69/7.25, 2.56/0.26; Huatai-PB Tianfu Ruixiang Stable Pension Target One-Year Holding Mixed (FOF) Y was established on November 17, 2022, with fund managers Cai Jianlin and Cheng Zhucheng; the annual performance and benchmarks from 2023 to June 30, 2025 are (%): -0.27/-1.04, 4.24/7.25, 2.89/0.26; Huatai-PB Tianfu Ruixuan Stable Pension Target One-Year Holding Mixed (FOF) Y was established on November 17, 2022, with fund manager Cai Jianlin; the annual performance and benchmarks from 2023 to June 30, 2025 are (%): -1.95/-1.04, 6.84/7.25, 3.16/0.26; Huatai-PB Tianfu Zengzhang Stable Pension Target One-Year Holding Mixed (FOF) Y was established on November 17, 2022, with fund manager Cai Jianlin; the annual performance and benchmarks from 2023 to June 30, 2025 are (%): -3.33/-1.04, 6.02/7.25, 3.67/0.26; Huatai-PB Pension 2030 three-year holding mixed (FOF) Y was established on November 11, 2022, with fund managers Cai Jianlin and Chen Si; the annual performance and benchmarks from 2023 to June 30, 2025 are (%): -7.44/-4.28, 1.63/9.30, 5.83/9.38; Huatai-PB Pension 2040 five-year holding mixed (FOF) Y was established on November 17, 2022, with fund manager Li Biao; the annual performance and benchmarks from 2023 to June 30, 2025 are (%): -9.42/-6.03, 2.67/10.26, 3.44/0.69; Huatai-PB Pension 2050 five-year holding mixed (FOF) Y was established on November 11, 2022, with fund manager Li Biao; the annual performance and benchmarks from 2023 to June 30, 2025 are (%): -9.45/-7.64, 2.80/10.88, 3.67/0.76. Data from fund periodic reports, as of June 30, 2025.