To address the issue of a rapidly aging population combined with a declining birthrate, Japan’s government approved of an outline to raise the public pension collection age to 71.
In tandem with the aforementioned reasons, the Friday outline also indicated that motivation to continue working as well as community activities have increased in older adults, as they are physically healthier now than they have been in previous generations. This is due to advances in healthcare-related science and technology. The government will also review the standardization of life according to age category.
According to the Japan Times, the Ministry of Health will design a new system once it studies 2019’s pension financing before considering revisions to pensions laws in fiscal 2020.
Japan’s current law allows one to collect their pension at any time between the ages of 60 and 70, with monthly payments being raised should the participant wait until they are 65 and older. Japan Times states that this particular pension scheme is not widely used.
The Times also says that Japan’s government seeks to have companies raise their retirement ages or extend post-retirement employment. To help encourage people to work a few more years, the government will support advanced technology development such as nursing robots to help the elderly. It is also considering providing support for those looking to start their own businesses, promoting telecommuting.
The outline is reviewed about every five years, on average.
“Depopulation in rural areas is expected as the pace of aging picks up. It is important to realize a society where people of all generations can widely and actively participate,” Prime Minister Shinzo Abe said during a meeting on the issue Friday, reported by Japan Times.
Tags: Japan, Ministry of Health, Pension, Pension Collection Age