Jun 04 (Japan Times) - The public pension system is not enough to sustain people’s livelihoods anymore in a rapidly aging society, according to a government report.
A council at the Financial Services Agency estimated that a couple who will live until 95 years old will need at least ¥20 million after retirement, more than their pension benefits can cover.
It therefore called on the public to take greater charge of their finances to plan for their retirement by proactively managing and investing their assets.
The report, released Monday, calls on individuals to take on more risk than in the past when planning their financial future, but careful selection of financial products will be necessary due to a potential loss of principal when investing.
For example, a couple with a man aged 65 or older and a woman aged 60 or older will face a monthly debt of ¥50,000 if they depend only on their pensions, according to the report.