Just after Teachers' Day, China Trust Bank, which has been promoting private school pension fund trust business in partnership with the Private School Pension Fund Management Association since 2010, announced that it will innovatively launch the "Full Life Cycle Fund" to extend retirement investment planning from "accumulation on the job" to "post-retirement life." Through the automatic adjustment of asset allocation mechanisms, it will help teachers from the sprint period of their careers to the enjoyment stage after retirement. Even if they are over 90 years old or at the end of their lives, their financial management needs can be met.
China CITIC Bank pointed out that considering the long-term living expenses, medical care and asset allocation needs of teachers after retirement, CITIC Bank, the Ministry of Education, and the Private School Pension Fund Management Association plan to add a "full life cycle fund" option, which will participate in the investment choices of private school pension fund trust teachers. The original nine investment portfolios will be integrated into three types of investment portfolios: active, stable and conservative, laying the foundation for the launch of the "full life cycle fund".
CITIC Bank pointed out that the private school retirement savings system introduced "life cycle funds" in 2017 and will become the default option for teachers to invest independently during their employment from 2020. Asset allocation will be automatically adjusted based on age to gradually reduce investment risks before retirement. For example, those under 37 years old will be 100% active, and the proportion of steady and conservative funds will increase with age; those between 62 and 65 years old will become conservative, with automatic withdrawals after retirement.
The Private School Retirement Fund Management Association explains that the upcoming "Full Life Cycle Fund" is an advanced version of the "Life Cycle Fund". It is based on the design concept of new retirement financial management options in the existing structure. It also considers the asset management needs after retirement, with active and stable assets as the core allocation, and the proportion of stable assets increases with age. The "Life Cycle Fund" and "Full Life Cycle Fund" mechanisms will be parallel in the future. Faculty members can choose the most suitable retirement investment strategy based on their own risk attributes, retirement goals and financial needs.
CITIC Bank has been providing private school pension fund trust business for 16 years. As of the end of August this year, the assets of the private school pension fund exceeded NT$120 billion, with more than 40,000 participants. It has become one of the important pension trust systems in the country. In addition, the private school retirement savings system continues to be upgraded, including optimization of independent investment platforms, multi-currency trust mechanisms, overseas ETF investment services and digital function construction, etc. It is worth mentioning that since the establishment of the private school retirement savings independent investment platform in 2013, as of the end of August this year, the average annual return rate of the three types of investment portfolios has been 12.81% for the active type, 10.35% for the stable type, and 3.49% for the conservative type, highlighting the importance of disciplined investment and diversified allocation.
