Personal tax-deferred commercial pension is the important measure to improve Chinese multi-level pension system while the tax-favored design is the key to promote coverage rate and market development. The practical experience of personal pension plan of typical countries shows that the most applicable models are EET and EEpT, that the most rational favorable tax system design is “proportional quota + relative fixed amount quota” in tax payment period and partial tax-free in pension drawing period. The simulated calculation results on Shanghai indicate that the policy provides more tax incentives for middle-income earners with social insurance, enterprise annuity or occupational annuity, and housing provident fund. Because of different income, age, gender, and investment yields, there is a big difference in the insured’s premium cumulative value, total tax utility, and first year replacement rate of commercial pension. The affordable scope of government finance can keep tax cost of policy implementation when payment quota ranges from 1000 yuan to 1200 yuan. Thus, we should use tax-deferred pension model by combining EET with TEE, make different tax-deferred pension quotas for different people, give tax subsidy for weak group of people, and expand the function of individual pension savings accounts.