To cope with population aging from a financial perspective, the key is to expand the scale of pension funds to accumulate long-term capital and better allocate the funds to preserve and increase their value, which will ultimately contribute to high-quality economic development. To this end, I propose three policy suggestions: first, China should design a comprehensive policy toolkit to deal with population aging and expand the scale of pension funds; second, businesses should take on social responsibility and widen the coverage of enterprise annuity; third, pension investment should be optimized to leverage the opportunities brought by population aging.

The size of China’s silver economy would reach 15 trillion RMB in the coming decades, which means China could become one of the largest markets that provide products and services to meet the need of the elderly, and  China’s silver generation should be able to enjoy better quality of life and more wealth than the generations before them. Going forward, insurance companies should play a greater role as the third pillar of China’s pension system and better support the development of the real economy. In particular, life insurance companies have professional expertise in large-scale investment, which can bring long-term returns for the capital market.