Cina’s former central bank chief sounds alarm over pension dangers

• Zhou Xiaochuan says that as the country’s population ages, a crack could easily open up in the already limited pension pool
• Private pensions will have to be a bigger part of the equation, he says

China cannot wait any longer to address the flaws in its pension system and to ensure the public has a better understanding of the problem, according to a former head of the country’s central bank.

Economist Zhou Xiaochuan, also a former vice-chairman of China’s top political advisory body, told a wealth management forum in Beijing on Saturday that pressure on the pension system was building as the country’s vast population aged.

“A reality in China is that it has a large population, and simultaneously the scope of pensions continues to expand. Generally speaking, due to the ageing population, there will easily be a crack in the pension pool,” Zhou said.