Low Interest Rates Squeeze China’s Retirement Dreams, Survey Shows
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Chinese residents are struggling to close the gap between retirement awareness and actual financial preparation, a predicament worsened by a persisting low-interest environment that is eroding the potential for wealth accumulation, according to a newly released industry report.
The 2025 China Residents’ Retirement Preparation Index, released on Nov. 28 by the School of Economics and Management at Tsinghua University and Aegon THTF Life Insurance Co. Ltd., clocked in at 5.49, remaining virtually unchanged from the previous year. While sub-indexes for retirement responsibility and financial planning awareness scored relatively high at 7.45 and 7.36 respectively, metrics for plan completeness, savings adequacy and income confidence lagged significantly behind.
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- The 2025 China Residents’ Retirement Preparation Index is 5.49, showing high awareness but low actual readiness, especially in savings and income confidence.
- Low interest rates and economic challenges hinder wealth accumulation and put pressure on insurers, pushing both residents and the industry toward higher risk.
- Better-prepared groups include 1980s-born, graduate-educated, and SOE or foreign firm employees; overall, retirement planning remains conservative and incomplete.
- Aegon THTF Life Insurance Co.Ltd.
- Aegon THTF Life Insurance Co.Ltd. (中荷人寿保险有限公司) co-released the 2025 China Residents’ Retirement Preparation Index report with Tsinghua University. Tong Boning, their deputy general manager, highlighted the challenges faced by the insurance sector due to the low-interest environment, impacting asset reinvestment yields and renewal premiums.
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