China kicks off its private pension scheme in 36 cities

China kicked off its private pension scheme in 36 cities on Friday, as the ageing country officially launched its third pillar of the pension system to deal with an ageing population.

The first batch of cities in the scheme include Beijing, Shanghai, Guangzhou and Chengdu, China's Ministry of Human Resources and Social Security said in a statement on Friday.

China launched its first private pension scheme in April as it grapples with a rapidly ageing population. Earlier this month, it published rules, listed approved products and named companies that can participate in the scheme.

The co-called third pillar of China's pension system will supplement the existing two pillars - public safety net, and corporate annuities. Under the scheme, employees can contribute up to 12,000 yuan ($1,860) per year to their individual accounts and enjoy tax benefits.