Introduction: To uphold the investor-centric philosophy and enhance financial education, CITIC-Prudential Fund's "Rising UP: Investing with Warmth" initiative aims to provide comprehensive wealth management support throughout investors' lifecycles. This is achieved through systematic financial literacy programs, professional investment guidance, and diverse communication platforms.
With life expectancy surpassing 80 years and pension replacement rates under pressure, how can asset allocation be strategically planned to transform "aging with security" from aspiration to reality? CITIC-Prudential Fund's second investor service event under the "Rising UP: Investing with Warmth" campaign was held in Hainan, focusing on "New Opportunities in Asset Allocation for the Longevity Era." Against the backdrop of palm trees and ocean breezes, participants explored innovative solutions for retirement wealth planning.
The event featured insights from product analysis expert Ren Pengyu, who presented on "China's Asset Re-anchoring in the Longevity Era." He analyzed demographic shifts and pension sustainability, highlighting challenges and opportunities in an aging society. Ren noted China's dual pressures of declining birth rates and deepening aging, with the social pension dependency ratio potentially dropping to 2.3:1 amid rising life expectancy, significantly increasing retirement security burdens.
Given demographic changes and insufficient pension replacement rates, retirement planning has become essential for personal financial management. Ren emphasized that diversified asset allocation is now critical for stable retirement, as declining replacement rates and longer lifespans necessitate early incorporation of retirement needs into investment frameworks to avoid future wealth shortfalls. He stressed that proactive planning to counter uncertainties is central to retirement security, as reliance solely on social pensions may not meet quality-of-life expectations. Diversified asset allocation—balancing risk and returns to build a financial safety net—is a core competency every investor should develop.
Retirement finance is a vital component of public welfare, and public funds are emerging as key players in bridging pension gaps and enhancing retirement security through their professional expertise and product offerings.
Public funds support retirement planning through diverse product portfolios tailored to varying needs. Since the launch of personal pension schemes, product options have expanded from target-date FOFs to include index funds, enhanced index funds, and ETF feeder funds. As of September 30, 2025, 302 personal pension funds were available, with over 98% delivering positive returns since inception, offering investors broader choices (source: ifind). Additionally, investors can opt for "fixed income+" or dividend-focused funds to hedge against inflation and mitigate single-asset volatility, building robust financial cushions.
In addressing longevity-era challenges, public funds serve not only as financial instruments but also as critical infrastructure for retirement security systems. With ongoing product innovation and policy support, they are poised to complement basic pensions and corporate annuities, fostering a multi-tiered, sustainable retirement framework to help achieve "aging with security and dignity."
The Hainan event exemplified tailored services for longevity-era wealth needs. Moving forward, CITIC-Prudential Fund will continue its "Wealth Creation Journey" program, guiding investors in strategic asset allocation to secure retirement aspirations and achieve long-term value growth—truly "Rising UP."
Risk Disclosure: This material is for reference only. The views expressed are current and do not predict future outcomes or constitute investment advice. CITIC-Prudential Fund assumes no obligation to update outdated information. This material is not financial advice or an offer to buy/sell securities. Information is sourced from publicly available data, with no guarantees of accuracy. Forward-looking statements are not promises of future performance. Investors bear all risks. Past performance does not guarantee future results. Read prospectuses and legal documents before investing. Investments carry risks.
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