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Guide long-term funds to enter the market: Personal pension is a long-term fund, and its investment in index funds will help guide more long-term funds to enter the capital market and enhance market stability.Improve market efficiency: the transparency and low rate of index funds help to improve market efficiency, reduce transaction costs and increase investor participation.The aging of the population is increasing: the proportion of people over 60 years old in China continues to increase, and it is expected to reach 29.9% by 2040, which poses great pressure on the existing old-age security system.

2.1 Increased market liquidityThe entry of long-term funds into the market helps to reduce short-term fluctuations in the market and enhance market stability. Personal pension as a long-term fund, its investment in index funds will reduce speculative transactions in the market and enhance the long-term investment attributes of the market. According to market research, long-term capital entry into the market can reduce market volatility and improve market efficiency and stability, which is of great significance to the healthy development of the capital market.2.3 Market stability improvement

Market scale growth: The inclusion of index funds is expected to attract more individual pensions to participate, thus increasing market scale and improving market liquidity.The pressure on basic old-age insurance is increasing: with the aging population, the growth rate of basic old-age insurance fund expenditure exceeds the growth rate of income, and it is estimated that the basic old-age pension gap will be close to 3 trillion yuan by 2030.2.2 diversification of investment style