Over the last 24 years, people working in China's public institutions, notably the civil service, have been enjoying a favorable pension program where they didn't contribute to the pension pools when working but were able to receive relatively more money after retirement.

This has become the target of the government's latest plan in pension reform. Though a radical change is out of the question, around 40 million people in the public sector are expected to be affected.

The move, however, is unlikely to solve all problems facing China's pension system.

At the moment, people above the age of 65 years old comprise more than 10% of China's population, and this number will continue to rise rapidly. This inevitable aging of society gives rise to the urgency for a multi-faceted change in the way people receive their pensions.

So, how important is China's latest move to reform its pension system? And what remains to be done?

Ni Hao, you're listening to People In the Know, presenting you with insights into the headlines in China, and around the world, I'm Zheng Chenguang in Beijing.

People in the Know's Ding Heng catches up with Professor Athar Hussain, Director of the Asia Research Center, London School of Economics and Political Science in the UK, and Terry Lum, Associate Professor at the Department of Social Work and Social Administration, and Director of the Sau Po Center on Ageing, University of Kong Kong.