Personal pension is voluntary, not compulsory, and can be paid or not. Personal pension funds will be used for investment and wealth management, to achieve asset preservation and appreciation. The benefits of investment will be enjoyed by the insured, and the risks of investment will be borne by the insured. Participants can choose to buy four kinds of financial products that meet the requirements, such as savings deposits, wealth management products, commercial endowment insurance and fund public offering, through the funds in the personal pension fund account.

Personal pension is a kind of "special" deposit. Xie, an associate professor at the School of Sociology of Huazhong University of Science and Technology, said in an exclusive interview with a reporter from Yangguang.com that there are two main differences between personal pensions and general deposits: First, personal pensions can enjoy certain tax incentives; Second, personal pension can be invested and operated. Through personal investment and financial management, you can buy financial products with different risk levels. The risk is borne by the individual, and the income belongs to the individual.

At the same time, participating in the personal pension system can help individuals plan pension funds reasonably. Chen Wenming, the chief lawyer of Zhejiang Xiaode Law Firm, explained that from the system design, the account funds are closed and can only enter and exit at the payment stage. Personal contributions and investment income are accumulated in the account and can be collected when they reach the age of receiving basic pension.

He further stated that, in other words, helping participants to export personal pensions firmly from the system will help individuals to rationally plan pension funds, rationally choose investment products and investment periods, and avoid early withdrawal, thus effectively playing a supplementary role in providing for the aged.