Further increase in pension age proposed

April 12, 2018

Tokyo- Japan's Finance Ministry put forward a proposal on Wednesday seeking to raise the starting age for receiving benefits under the country's "kosei nenkin" public pension programs for corporate employees to 68.

The proposal is designed to help improve the finances of public pension programs, eroded by the aging of the country's population.

A further deterioration in pension finances could lower the amount of benefits that people can receive in the future when many people in the country are projected to reach the age of 100, the ministry said.

The ministry presented the proposal at a meeting of a subcommittee of the Fiscal System Council, an advisory panel to the finance minister.

Under the current plans, the starting age will rise from 60 to 65 in stages by 2025 for men and by 2030 for women.

The ministry said the starting age should be raised further to 68 by 2035, when the number of people reaching 65 is expected to spike.

Many members of the subcommittee supported the proposal, while some others expressed caution, Eiji Tajika, professor at Tokyo's Seijo University and acting chairman of the subcommittee, said at a press conference after the meeting.

The ministry's proposal is expected to be reflected in discussions on a planned overhaul of the country's public pension system.

The Japanese government is expected to start discussions about the overhaul after the welfare ministry presents the outcome of its review of public pension finances as early as next spring. The review is conducted once every five years. Jiji Press