Zhou Xiaochuan, a former President of the People’s Bank, (China’s Central Banker), recently said that China’s pension system does not have enough funding. Zhou made that statement on February 25, at the Fifth Global Wealth Management Forum. Zhou said that expansion of the coverage of China’s pension system and the aging trend make the current funding insufficient. The state managed funds can only provide rudimentary coverage. The gap needs to be covered by each person’s own individual retirement account (funded by that person himself).
Zhou said China’s pension fund reserve has a few trillion yuan. One can use the pension reserve as a percentage of the GDP to compare it with other countries. Many countries have a ratio between 50 and 100 percent. But China’s ratio is only 10 percent; some even say 6 percent, and some even say only 2 to 3 percent.
Source: Sina, February 25, 2023