INTERVIEW: Koizumi vows to capitalize on pension controversy for reform

June 18, 2019

Tokyo--Increased public concern stoked by a controversial government report provides a chance to raise awareness of ongoing pension system reform in Japan, ruling party lawmaker Shinjiro Koizumi said in a recent interview with Jiji Press.

The report from the Financial Services Agency suggested that an elderly couple living on pension would need 20 million yen over 30 years as their pension would not cover their living expenses. This has raised public concern and has even provoked a demonstration.

"The issue is a good chance to show what we've been doing," said Koizumi, director of the Liberal Democratic Party's Health, Labor and Welfare Division.

"Looking to the future where people live 100 years or more, I established a committee of young LDP lawmakers three years ago, and have since moved forward with social security reforms," said Koizumi, the popular son of former Prime Minister Junichiro Koizumi.

"We can never eliminate concern, but at least we can reduce it" through social security reform, he said.

In the face of public criticism, financial services minister Taro Aso declined to accept the FSA report, leading to a backlash from opposition parties. They accused the government of covering up the issue so it will not damage the ruling bloc's chances during the House of Councillors election in the summer.

"I will talk about pensions for the Upper House election," Koizumi said.

"Pensions are a big source of public concern, but the pension system is little understood by the public," he said.

"We'll create a pension system that will not put those who work longer at a disadvantage," Koizumi said. He said people would be allowed to put off receiving their pension benefits until 70 or older in order to receive larger amounts.

Under the current system, if a person starts receiving benefits from the age of 60, each payment will decline by 30 pct compared to a payment that starts from 65, Koizumi said, adding that a person who receives benefits from 70 gets 42 pct more. "I want more people to know that," he said.

"What must be understood is that the pension system is not meant to cover all expenses but is one pillar of postretirement life," he said. Jiji Press