Actuarial Analysis of Personal Pension——Mr. Wang's "Pension Anxiety"

This paper takes Mr. Wang's family, a middle-and high-income household in a first-tiercity, as a case study to explore the path of personal pension planning. It conducts a comparative analysis of the actuarial logic between the U.S. IRA system and China'sthird-pillar personal pension system. The findings indicate that China's personal pension system, characterized by inclusiveness and certainty, is suitable for taxpayers with a marginal tax rate higher than 3%. For Mr. Wang's family, the optimal strategy is to make the maximum annual contribution to the personal pension account, positioning such contributions as basic assets. Although these assets alone may not fully cover the family's entire pension needs, they can serve as a solid "safety cushion" for elderly care security. By combining this with other asset allocations, a multi-tiered pension security system can be established to achieve long-term financial security in retirement.