Japan to offer pension age option of over 70

January 18, 2018

Tokyo- The Japanese government will offer an option to postpone the starting age for receiving public pensions to over 70, according to draft policy guidelines unveiled Wednesday.

The government hopes that the measure will encourage more elderly people to work and help stabilize public pension financing, officials said.

The government presented draft revisions to guidelines for policy measures to address the aging of the country's population, at a meeting of the ruling Liberal Democratic Party.

The new guidelines, which will mark the first revision in about five years, will be adopted at a cabinet meeting later this month.

Afterward, the welfare ministry will set details of the pension age. Related legislation is likely to be submitted to parliament by 2020.

The new guidelines will say that treating people aged 65 or older uniformly as elderly no longer fits the realities of Japan's society.

The country will aim to create a society where all people can play active roles according to motivation and ability, the draft said.

Under the current system, people start receiving public pensions when they turn 65 in principle, but they can choose a starting age between 60 and 70.

People who push back the starting age from 65 see their benefits increase by more than 40 pct at the maximum from the originally entitled amounts. Meanwhile, people who bring forward the starting age receive lower benefits.

The revised guidelines will call for boosting add-on benefits further for people who delay receiving pensions beyond the age of 70.

Also planned are measures to make it easier for elderly people to work and start businesses, including the promotion of second and side jobs.

The guidelines will have a numerical target of lifting the employment rate for those aged 60-64 to 67.0 percent in 2020 from 63.6 percent in 2016. Jiji Press