Enter your annual income and contribution amount to instantly calculate tax savings, accumulated principal, and projected retirement withdrawals
The Personal Pension (个人养老金) is China's third pillar of the pension insurance system — a government-supported, voluntary, market-operated supplementary pension plan. Participants can open a personal pension account and choose from approved financial products including bank wealth management, savings deposits, commercial pension insurance, and public mutual funds to grow their retirement savings.
Since January 1, 2024, the annual contribution cap is ¥12,000. Contributions are fully deductible from comprehensive income (综合所得), enjoying tax-deferred treatment.
Note: This calculator is for reference only. Actual tax savings may vary due to income fluctuations, tax policy changes, and investment performance. Please consult tax authorities for definitive guidance.
Since 2024, the annual contribution cap is ¥12,000. Participants may contribute monthly, in installments, or annually, as long as the total does not exceed the annual limit. Excess contributions cannot be deducted from comprehensive income for tax purposes.
Contribution phase: The contribution amount is fully deducted from comprehensive income, reducing your current taxable income. The tax saved depends on your applicable tax rate. For example, someone with ¥200,000 annual income (after the ¥60,000 basic deduction, at 10% rate) saves ¥1,200 per year by contributing ¥12,000. Investment phase: Returns are temporarily tax-free. Withdrawal phase: Only 3% tax is applied — far lower than the higher rates during your working years, achieving tax-deferral benefits.
Per policy, personal pension withdrawals are subject to a flat 3% Individual Income Tax (个人所得税), calculated separately. This is actually a preferential rate — if you were taxed at 10%, 20%, or even 45% during your working years, you deducted contributions at the higher rate but only pay 3% upon withdrawal. The rate difference is your tax savings.
You can independently choose from approved financial products, including: bank wealth management products, savings deposits, commercial pension insurance, and public mutual funds. Different products have different expected returns and risk levels. The default 3% annual return rate in this calculator is for reference only; actual returns depend on your chosen investment products.
Anyone enrolled in basic pension insurance (基本养老保险) can participate, but tax savings vary by individual: the higher your income and tax rate, the more significant the savings. Those with annual taxable income exceeding ¥36,000 (i.e., at the 10% rate or above) benefit the most. If your income is low and you're at the 3% rate, tax savings are limited, but the investment growth within the account still provides some value.