<p>This study investigates the impact of supplementary pension insurance programs (SPIPs) on the operational risk of Chinese listed companies from 2005 to 2019. Our findings reveal three key insights: (1) firms with SPIPs and higher investments in them exhibit lower operational risk than firms without SPIPs or with lower investments in them, (2) the risk-reducing effect of SPIPs is more pronounced in companies with more educated employees than in companies with less educated employees, and (3) SPIPs help lower operational risk by enhancing employee retention. We adopt China’s SPIP tax reform in 2008 as a natural experiment and use a difference-in-differences model and a fixed effects model to address endogeneity concerns. Our study highlights the role of SPIPs not only as a form of endowment insurance but also as an important driver of the employee retention effect. These findings help stakeholders such as employees better understand SPIPs, and offer insights into the development of national strategies for addressing the challenges presented by the aging population.</p>