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Most employees want to decide their own annuity plan

By Xie Qi (chinadaily.com.cn)
Updated: 2007-05-28 15:29

A survey of more than 2,000 employees nationwide found that 66.7 percent of respondents want to be able to choose their own annuity plans. The survey was conducted by Manulife-Sinochem and China Human Resources Development Network.

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The result shows that an increasing number of people are becoming more interested in corporate annuity plans, but companies and employees are divided over this issue.

In terms of investment account management, 67.2 percent respondents express strong desire to decide which account to put their annuity in, while half of the companies surveyed want to make the decision for their employees.

In terms of investment risks, companies are more risk-conscious and prudent, but employees are more risk-tolerant. The survey shows that 77.7 percent of companies want to choose long-term, stable and safe investment plans with conservative returns, while 44 percent of employees prefer high risk and high return investment plans.

The employees surveyed differ on contributions too. Some 66 percent want it to be determined according to salary amount, while only 16.6 percent and 17.3 percent respectively say titles and length of service should be the way to calculate contributions.

Currently, companies have the final say in deciding their employees' annuity plans. However, statistics show that only 19 percent of the companies surveyed have bought corporate annuity and 22 percent of the employees surveyed enjoy corporate annuity.