The theme for August was “The Life of Pensioners in Comparison.” Let's try to think about our future pension using a comparative analysis of various data. In this article I offer an analysis of countries around the world and Japan. What is the Japanese pension system, and how are the Japanese preparing for a happy old age from a global point of view?
Japan is a country of long-livers, so the burden of pensionsheavierdoubly
The issue of a happy old age is especially acute for Japan. The reason is that Japan is a country with one of the longest life expectancies in the world, in other words, old people live a long time here.
According to statistics published by the Ministry of Health, Labor and social security July 25 with an overview of the general situation of life expectancy for 2012, the average life expectancy of men in Japan is 79.94 years, women - 86.41. These results from a study conducted by the ministry indicate that Japanese citizens are among the longest-living people. Japanese women rank first in the world in this aspect, men - fifth.
The longest lives in the world are lived by men in Iceland, where the average life expectancy for men is 80.8 years, but it is not much different from other developed countries of the European Union, where almost everywhere statistics range from 77 to 80 years. However, if we look at similar indicators in developing countries, then in Brazil it is 70.6 years, in China 72.38 years, in India 62.57 years, which can hardly be called longevity. Even if we do not take into account the issue of retirement age, it is already clear that the Japanese must prepare for a long old age.
By the way, the longer life of women compared to men is a general trend for all countries of the world. In most cases, they will age 5-7 years longer than men. For women themselves, such a long old age is a problem. In any case, it is necessary to keep in mind that the Japanese are one of the longest living nations in the world.
Data suggests that even by world standards, Japanese people age very long. This was achieved with the help of advanced medicine, namely through the balanced development of medical technologies, the construction of an effective system of medical services, as well as a comprehensive health insurance system. And that is great.
Why do the Japanese retire earlier than other countries?
Meanwhile, it is strange that in Japan the retirement age is lower than in other countries of the world. Last June, the Organization for Economic Co-operation and Development (OECD) published a report on pensions (OECD PENSIONS OUTLOOK 2012), according to which approximately 40% or 13 countries among the organization's member countries set the starting age for pension payments at 67 years and above. Of course, Japan is not one of these countries. Japan is one of 17 countries where the retirement age is 65. ( Retirement age less than 64 years old - in three countries of the organization. This refers to the age of men).
The problem is raised that in countries such as the USA, Germany, Great Britain and Italy, where the average life expectancy is lower than in Japan, the retirement age is 67-69 years. Some countries are even trying to raise the retirement age by tying the start age for payments. social benefits to average life expectancy.
The matter should not be limited to simply raising the retirement age to 67 or even 69 years. This includes interim measures. By announcing early increases in the retirement age several years from now, the pension fund can be stabilized and also give people time to prepare for the changes. You cannot simply announce to 65-year-old people in 2040: “After all, we have decided to raise the retirement age to 67.” It is necessary to plan such actions in advance.
It remains unclear that in Japan, the country with the highest life expectancy in the world, the starting age for pension payments is 65 years. Moreover, there are no discussions or debates about increasing the retirement age in Japan, and there is no sign that they will begin anytime soon. The number of opponents to the proposal of the National Social Security Council is also unknown. Despite this, the current younger generation is willing to increase the retirement age to 67 years, it is also necessary to consider a possible raising of the bar to 70 years.
Japan has a huge pension fund by world standards
Critics of Japan's pension system always cite the problem of pension contributions. Their arguments are based on the fact that income into the pension fund is insufficient and there is a danger of depletion of funds.
Indeed, in addition to social pension payments, pension contributions play an important stabilizing role. Japan's pension assets amount to approximately 170 trillion yen, but I think that in the opinion of many citizens, the fund is not that large by global standards. It seems that, despite the fact that everyone understands that more thorough preparations need to be made, nothing is being done.
However, in fact, the volume of contributions to the Japanese pension fund is quite low. high level. According to a report by the Pension Policy Research Institute, the Social Security Fund pension provision USA - 186 trillion yen (at the end of 2010), Norway - 50 trillion yen (at the end of 2012), Canada - 13 trillion yen (at the end of 2011), Republic of Korea - 22.6 trillion yen (at the end of 2010) , while countries with a level pension fund about 100 trillion yen is practically non-existent. It turns out that compared to other countries, the size of Japan's pension fund is far from small.
By the way, the Government Pension Investment Fund (GPIF), which manages pension reserve assets, is the largest institutional investor in the world. (The 186 trillion yen US fund mentioned above is entirely fixed income. Organizations that administer pension funds for government employees also have 20 trillion yen each).
Why don't developed and developing countries with the same population as Japan have such large pension funds? There are two reasons. The first reason is that the process of accumulation of reserves has not yet been completed. In the event of sharp economic growth, the growth of the pension fund does not keep pace with the increase in the welfare of society, but there are many countries that in the future would like to create a reserve equal to several years of payments, although this is quite difficult to achieve.
The second reason is that some countries do not make changes to the automatic contribution system (insurance premiums are directly charged as benefits), so they do not feel the need to accumulate a reserve fund. For example, in Germany and the UK there is only a reserve necessary to pay one month and two months of pensions, respectively. Many people may be under the impression that it is better to have 100 trillion yen in reserve, but in fact there are many countries that do not think so.
Japan's large pension fund comes as it prepares extensively for a projected surge in benefits as a result of the mass retirement of baby boomers. This baby boomer generation collects insurance premiums while they are of working age in order to provide pension payments in the future, so they accumulate and increase assets, but actually ease their pension burden (there is a reduction due to profits from managing funds).
Of course, there needs to be a discussion about pension governance. However, if we look at Japan from a global perspective, it becomes clear that the situation in Japan is quite good.
Japan's task is to further increase its pension fund
As for social pensions and payments for them, in fact, the Japanese system can be called quite effective (high social payments in countries with a large tax burden). Even despite the long life expectancy, pensions are paid stably until death; the age at which payments begin is classified as low. I think that the accumulated pension reserve should be used for good (at one time, officials made the right decision).
However, in order to ensure a happy old age in Japan, a social pension alone is not enough. The fact is that reverse side that social pensions increased, the growth of private pensions began to lag. A trend has spread throughout the world to provide for one's old age independently (implemented through laws on tax breaks and mandatory participation in additional pension insurance) and create personal savings.
According to the American consulting company Towers Watson, 73% of Japan's pension fund consists of social pensions; pension savings of companies and individuals do not exceed 27%. In the USA, Great Britain, Australia, this ratio is exactly the opposite.
There is no need to destroy the reserve of social pensions that exists now, but if we think about subsequent expansion, it is necessary to lay the foundations for a system of private savings. Of course, the social pension will remain the basis for life (its great value is that the social pension can be received for decades, until death), but only personal savings can make old age truly carefree.
In my opinion, the Japanese often underestimate their capabilities. Noble modesty is very important, but perhaps it is better to turn your attention to positive sides social security system, rather than discussing only the shortcomings. I want the omissions of scientists and politicians to become clear so that there is an opportunity to correct them, but ordinary citizens should think in a positive way and try to ensure their old age.
TOKYO, August 20 - RIA Novosti, Ksenia Naka. Japan has long been associated with the word "most" when it comes to age: the highest life expectancy, the highest proportion of retirees in society and the share of retirees among the working population.
What is the essence of the Japanese pension system and how the issue of raising the retirement age was resolved, why housewives receive a pension and until what age do the Japanese want to work - RIA Novosti correspondent tried to find answers to these questions in the Ministry of Health, Labor and Welfare, in the Ministry of National Affairs, and also by talking to Japanese people who have already retired or are just preparing for it.
Age of "second life"
The Japanese pension system is difficult to understand primarily because there are too many deviations from general rule, which makes it flexible and “embedded” in individual plan the lives of those who, as it is now fashionable to say in Japan, have entered the period of “second life.”
The deeper one dives into the details of the Japanese pension system, the less obvious the answer to the question of what age is considered retirement becomes. It can be formulated closest to the truth, perhaps, as follows: “Everyone has the right to retire at 60, but he can receive full pension payments only from the age of 65.”
Japan is a country of an “aging” society, with fewer and fewer children being born and the life expectancy of the older generation increasing significantly. Ultimately, this means that the burden on workers to pay taxes, which then pay for pensions and health insurance subsidies, increases every year. At the same time, there is a tendency for the quality of life to change - more and more older people feel well enough to continue working or find a new field of activity. The state is interested in pensioners remaining in working status as long as possible and replenishing the budget with taxes.
“The role of the state is to regulate these processes. First of all, the employer cannot retire a person who has not yet reached 60 years of age. On the contrary, he is obliged either to raise the retirement age to 65 years, or to retain an employee who has reached 60 years of age. , until the age of 65 or as long as the employee expresses a desire to work. Enterprises may also not set a retirement age at all and decide the issue individually with each employee. There is also a system of subsidies that the state pays to the employer for employees whose age has exceeded 65 years." ,” Atsushi Kawai, an employee of the pensions department of the pension department of the Ministry of Health, Labor and Welfare, told RIA Novosti.
Pensioners: some statistics
According to the latest statistics from the Ministry of National Affairs, the average life expectancy in Japan is 80.89 years for men and 87.14 years for women. The Japanese quite rightly believe that after retirement they still have a third of their lives ahead of them.
They call the time after retirement the “second life”, in which, unlike the “first”, all debts to society in the form of the need to work, raise and support children have already been paid off and you can devote time and money to what you really wanted to do and about. than I had ever dreamed of.
The number of elderly people over 65 years of age in the country is constantly growing. In 2017, with general reduction population by 210 thousand people, the army of pensioners was replenished by 570 thousand.
In the structure of Japanese society, the share of people over 65 years of age is 27.7%. This is the highest figure in the world. And the number of those over 90 years old, for the first time in the history of maintaining such statistics, amounted to two million people. Japan has a population of 126 million people.
The army of working pensioners numbers 7.7 million people. The share of pensioners among the working population is 11.9%. However, the majority of them - three out of four - prefer the contract system to working in the state. According to surveys, most often when asked what this is connected with, retirees gave the answer: “I want to work when and at the hours when it is convenient for me.” Japan ranks first in the world in terms of the share of retirees among the working population.
The average level of savings per family of retirees is 23.94 million yen (more than 200 thousand dollars).
The pension fund in Japan today is 55 trillion yen (about 500 billion dollars), and a significant part of it (about 350 billion dollars) is made up of payments to workers and enterprises. At the same time, it is in deficit: 12.5 trillion yen (about 110 billion dollars) is contributed by the state from the budget.
© AP Photo/Shizuo Kambayashi
© AP Photo/Shizuo Kambayashi
How to quietly increase your retirement age
“In fact, the reform to raise the retirement age in Japan takes 25 years. The process is underway gradually: the age at which a person can count on full payment of his pension is raised from 60 years, as it was before 2000, to 65 years, as it will be when the reform is fully completed in 2025. However, this does not mean that if he retires earlier, for example at 62, he will receive nothing. This is wrong. But the system is built in such a way that when a person retires before 65, he loses a significant amount, which - and this is important - is no longer compensated or restored,” explains Kawai.
The intricacies of the Japanese pension system are most clear in pictures and graphs. So, if a person retires at the age of 60, he agrees that the level of his pension will be reduced by 30%, and, for example, if he retires at the age of 63, he will lose 12%. Those who retire at the age of 65 will be able to receive a full pension. That is why this age is most often called retirement age for the Japanese.
Moreover, if old man continues to work without retiring, then in a year the increase in pension payments will be 8.4%, and upon retirement at 70 years old, its size will increase by 42%.
Double-decker pension, "inheritance" of housewives
Japan has adopted a two-tier system of pension savings and payments. The basic level exists for individual entrepreneurs, students and anyone who cannot be classified as a large group of employees and workers of Japanese enterprises and government agencies. With a payment of 16.49 thousand yen per month (about $150) until the age of 60, a person from the age of 65 can expect to pay 65 thousand yen (about $600) per month, subject to a maximum of 40 years of service.
The second level of pension depends entirely on income. Payments amount to 18.3% of the salary; they are usually made by the employer, deducting the required amount from the employee’s salary. It must be paid before actual retirement, regardless of age, and can be received from the age of 65. The amount of this pension depends on income, but on average it fluctuates around 154 thousand yen (about 1500 thousand dollars) per month.
A distinctive feature of the Japanese pension system is the right of housewives not only to receive a pension, but also not to pay monthly pension contributions. By default, since those times when, in the era of economic recovery and rapid growth, Japanese women, after getting married, mainly took care of the house and children, it is believed that their work at home provided a reliable rear for their husbands while they devoted all their strength to the prosperity of a company, factory or government institution .
The monthly pension to which a housewife is entitled upon reaching the age of 65 is equal to the basic level of 65 thousand yen. Moreover, after the death of her husband, she continues to receive some part of his “second level” pension, which was calculated at 18.3% of the salary.
Everywhere in its own way
It would seem that the Japanese system is structured in such a way that everyone should strive to work as long as possible. However, in reality this is far from the case.
“The question of maintaining a place, as well as the amount of salary after reaching 60 or 65 years of age, the conditions for continuing work differ depending on the company’s rules. In some places the position and salary may be retained in full, in others the person will be transferred to a lower position with a lower salary. There is no one-size-fits-all rule,” says Kawai.
And indeed, as RIA Novosti managed to find out, in fact, the retirement age, which largely depends on working conditions after reaching the age of 60 or 65, is different in each company.
“I am now 58 years old. In two years I will retire immediately. Yes, I go to the mountains, I feel great and am full of energy. I am now the president of the company. If conditions did not change, of course, I would be ready to remain at I still have a few years left in this post, but the rules in the company are such that after 60 years, my salary and (one-time - editor's note) longevity payment (in Japan it can be several hundred thousand dollars. - Note) will be sharply reduced. . ed.). That is, it is simply not profitable for me to hold my position for longer. I will retire and still figure out what to do,” the head of the company in a large telemedia holding told RIA Novosti.
The leading musician of one of Japan's largest orchestras said that in ordinary companies it is often more profitable to remain working after 65 years, but not in an orchestra.
“A musician can remain working after 60 at his workplace after passing a commission, which, as a rule, is of a formal nature. He most often retains his salary, or this happens through internal compensation and payments. But after 65 years, no there can be no exceptions: he is obliged to retire and give up his place to someone else, six months before this, a competition is appointed to fill his position, and strictly at the age of 65 he is obliged to leave the orchestra,” he explained.
How long can you work
The Japanese are often described as a nation of workaholics. As a rule, this means long working hours, short holidays, as well as the so-called “death from overwork” - “karoshi” - a term that has become international to the horror and shame of the Japanese themselves.
As polls show public opinion, the desire to work does not let go of the Japanese even at a very old age.
According to a survey by the Ministry of Health, Labor and Welfare, which included three thousand people, only 11.8% of respondents are ready to retire at 60, and 21.4% at 65. Before 70 years old - 23.6%, after 75 12.8% are ready to work. But the most popular answer—29.5%—was that they want to work “as long as they have the strength.” In total, the ministry concludes, “after 65 years, 70% of respondents want to work.”
“The state is actively working to help older people find themselves and their place after retirement. There is a job search service for people of retirement age. In the “second life”, not only salary is important, but also the feeling that you are in demand and bring benefits,” Kawai concludes.
Read more about retirement ages in other countries >>
The Organization for Economic Co-operation and Development (OECD) has published a list of countries with the largest number citizens over 65 years of age who continue to work. This is stated in the organization's report. The list is topped by Ireland, where more than half (56.3 percent) of citizens aged 65 to 69 continue to work. Indonesia was second (50.6 percent), third was South Korea with 45 percent. Also in the top ten were Japan (42.8 percent), Chile (39.9 percent), Israel (39.3 percent), Mexico (38.6 percent), China (36 percent) and India (35.8 percent). The five countries with the lowest labor force participation among older citizens, according to the report, are Luxembourg, where no one works after 65, Belgium (4.7 percent), Hungary (5.3 percent), Slovenia (5.2 percent), Slovakia (5.6).
The report does not provide information about Russians who continue to work after 65 years of age. Dominance in the list of countries where citizens over 65 years of age continues labor activity, is associated with differences in the culture and legislation of European and Asian countries. Thus, in some European countries, workers may be fined if they continue to work after retirement age. Attempts by the authorities to raise the retirement age have been met with protests. At the same time, in many Asian countries, citizens supported the idea of increasing the retirement age. In particular, in Japan, the retirement age will be raised in 2025. 
The retirement age in Japan is the same for both sexes. Since 1942, this country has practiced a pension payment system called “public”. This name is due to the fact that only a third of it was subsidized by the state treasury, and the overwhelming amount consisted of contributions from the working population and employers. Since 1986, every resident of Japan has received basic disability benefits on time, upon reaching a certain age or losing a breadwinner. Japanese women can become pensioners after 65 years of age. But, in this case, they will receive a minimum amount of basic payments - about 67,000 yen (about 41,000 rubles or 600 US dollars). There is a certain scheme that allows Japanese women to interrupt their service at 60 years, but at the same time they receive an amount that is a quarter less than what is paid after 65 years. If a woman continues to work, by the age of 70 the pension will be increased by 25% relative to the payments received at the age of 65. Basic contributions are accrued to pensioners who have reached the age of 70 and have at that time total experience at least 25 years. At the same time, during the performance of work duties, insurance contributions must be paid. If, after reaching an age suitable for leaving work, a woman continues to work, then in addition to the basic component, she is also entitled to professional or labor compensation, which increases by 5% annually.
FOR MEN
Japan is one of the few countries where the retirement age for both sexes is the same and is 70 years old. At the same time, the Japanese have the opportunity to leave work at 60-64 years old, but then basic part payments are cut by 25%. The calculation of such payments for men follows a similar scheme as for women - the length of service must be at least a quarter of a century, and the retirement date must not be earlier than sixty-five years. When continuing career and labor activity after reaching retirement age, men are accrued labor pension, which increases by 5% every year. In addition to the above charges, residents of Japan are entitled to a lump sum payment upon retirement. Its amount is calculated by multiplying the number of years worked by the salary received by the employee - the result will be the compensation issued. 
Only the residents of Japan can be absolutely confident in their future; even in old age they are not threatened with poverty. The government made sure in advance that in case of any crisis or cataclysm, pension payments would be enough for 5 years in advance. Not every developed country can boast of such achievements; there’s nothing to say about third world countries, so today we’ll talk about pensions in Japan.
Social Security: Features
Pensions in Japan began to be paid in 1942. At that time it was called a public pension because only a third was paid from the state fund. The missing amount directly depended on contributions from entrepreneurs and the working population. At that time, pensions in Japan were not particularly stable. The situation changes in 1986, when the Social Security Fund was founded. Today, the assets of this organization amount to 170 trillion yen. In the United States alone, the pension fund is more than 186 trillion yen, but the population in this country is several times larger than the population of Japan.
Country of centenarians
Life expectancy in Japan is the longest in the world. As statistics from the Ministry of Health, Labor and Social Security show, the average life expectancy for men is 79.9 years, for women - 86.41. So the Japanese need to prepare in advance for a long old age.
According to research results, it can be said that Japanese old age is very long, even by world standards. And all thanks to advanced medicine, the balanced development of the best medical technologies and the health insurance system. But, even despite the long life expectancy in Japan, people begin receiving old-age benefits at age 65, which is much earlier than in other countries where the retirement age is 67-69 years.
Men and women have the same rights to pension payments. The retirement age in Japan remains unchanged, unlike in advanced countries, where they are trying to tie it to average life expectancy.
Pension amount
The size of pension payments in the Land of the Rising Sun depends on several indicators:
- Main part. Approximately 73% of the total amount comes from the Pension Fund and is paid monthly from age 65. If a person retires at 60, the pension amount is reduced by 25%. On average, Social Security is about $700.
- Professional pension. It consists of contributions from wages to the Pension Fund, approximately 5% of the amount earned. In addition, the employer makes his own contributions to the Pension Fund for each employee. The professional pension is calculated according to which pension system the person belongs to. For example, civil servants receive 2/5 of their salary.
- One-time allowance. When a person retires in old age, he has every right to receive a one-time benefit. This benefit consists of an average wages multiplied by the number of years worked at the enterprise. Such assistance is paid by the owner of the company.
So we can conclude that the pension in Japan is about $1,500. This is approximately 60% of the average salary. And if we take into account the fact that at this age a person no longer needs to spend money on purchasing a house, raising children, etc., then this is a very worthy provision for old age.
Pension Fund
As already mentioned, the pension fund in Japan is quite large. However, the question remains open: why, having the same number of working population, other the developed countries can't they create the same pension system as in Japan? Experts say there are two main reasons for this:
- The process of accumulating reserves has not yet been completed. And in the case of economic growth, the growth of the fund will not keep pace with the increase in social welfare.
- Countries do not change the system of automatic accrual of pension payments. Simply put, insurance premiums are automatically transferred as pension payments. Accordingly, the government has no reason to create a reserve savings fund.
Pensions in Japan are one of the highest in the world and all thanks to savings fund, but it is also important to understand how the Japanese, in principle, relate to money.
Efficiency
Pension system in Japan it is considered the most effective in the world. Regardless of life expectancy, pensions are paid consistently and the retirement age is still low.
And yet, to ensure a happy old age in Japan, a social pension alone is not enough. Yes, social pensions have increased, but at the same time, private pensions are noticeably lagging behind in growth. The trend of self-supporting one's old age and creating personal savings has long spread throughout the world. In Japan, 73% of the pension fund comes from social benefits, while in other countries this percentage is a measure of individual savings.
Naturally, there is no need to destroy the reserve social payments, but in the future, experts recommend thinking about creating a private savings system. State payments is a really valuable investment for living in Japan, but it's still better if everyone has extra savings of their own. The inhabitants of the Land of the Rising Sun themselves also think about this. Perhaps statistical reports only contain data about those Japanese who save for their old age through special funds, but in reality, every employee understands that they need to save at least a little.
Salary and frugality
The average salary in Japan is $3,500. It would seem that for young man For those who need to buy their own home and start a family, this should be just right, and considering how expensive education is in Japan now, we can safely assume that such a salary will not be enough. However, the Japanese are thrifty people. They buy everything they need, and do not waste the remaining money on trifles.
The richest old people
This habit is already so firmly ingrained in the minds of the Japanese that even when they no longer need to save money for education for their children or to buy real estate, they still save part of their salary. In Japan, because of this, pensioners retire with enough a large sum on hands. After retirement, they have a lot of time and financial resources to pursue their favorite hobbies, travel or learn something new.
An old-age pension in Japan can hardly be called a straw for a drowning man. According to the latest data, the richest people in the Land of the Rising Sun are pensioners. It is they who are targeted by the bulk of expensive, branded stores, since older people are solvent and can afford what they refused in their youth, absorbed in caring for their loved ones.
The public pension in Japan was introduced in 1942. It received the name public because only a third was subsidized by the state. The remaining two-thirds came from employee and employer contributions. Last, and very important, pension reform in Japan was carried out in 1985. Its main achievement was the introduction of basic pensions. Since 1986, any citizen of the country, regardless of nationality, gender, type of activity and income level, has the right to a basic pension for old age, disability and in the event of the loss of a breadwinner.
Types of pensions: old age and professional
Today, Japan’s rather complex pension provision can be divided into 2 main levels: 1st - basic pensions, 2nd - state (public) and professional. In addition, there are a number of other options various types pensions. But the basis is the same - state social insurance.
Basic pension covers the entire population and is set every year at a fixed amount, which is increased in accordance with rising prices for last year. It is prescribed at age 65. At the same time, there is a flexible scheme that allows you to retire from the age of 60, but in this case citizens receive it in a reduced amount (by 25%). For those who continue to work after 65 years of age, the pension increases annually. By age 70, the pension increases by 25%. The average pension in Japan is approximately 67 thousand yen (700 US dollars).
Level 2 consists of professional pensions. These pensions are financed by contributions from employers and employees in proportion to average monthly earnings (about 5% of the employee’s salary), as well as by compulsory pension insurance. The pension is calculated depending on which pension system the recipient belongs to and for how many years he has made contributions. For example, former civil servants receive approximately 2/5 of the previous average monthly income. The average pension in Japan reaches 60% of earnings.
In addition, the dismissed person is given a one-time payment equal to his salary multiplied by the number of years worked. We should not forget about saving for old age.
What do Japanese pensioners do after they retire?
The Japanese are the longest living nation. Lives in Japan a large number of healthy people whose age has exceeded one hundred, while the average life length of the Japanese is 80 years. This means that upon retirement a person has about 20 (or even more) years of free life. How do Japanese retirees spend these years?
Japanese retirees are super active people who love and know how to enjoy life. They perceive retirement as an opportunity to finally make long-held dreams come true: they travel the world, go to photography school, learn how to cook other people's dishes, grow fresh vegetables, volunteer or learn languages. Japanese pensioners attach great importance to physical activity and maintaining excellent physical shape. They can be found in hiking clubs, swimming pools and gyms. They go hiking with friends or just walk.
But not all Japanese residents are happy to reach retirement age. Many of them need to work because state pension lacks. 1/3 of working pensioners are employed in agriculture, the rest in the service sector. 1/5 of pensioners live below the poverty line. Some even have to sleep in the open air and rely only on humanitarian organizations handing out free food. Japan is the world leader in the number of suicides, of which a third occur among people of retirement age.
It follows that the existing pension system in Japan is on the verge of a serious crisis. And many Japanese, from a young age, begin to pay close attention to personal savings, without much hope for the state.
