Japan Drops Plan to Extend Pension Contributions by 5 Years

TOKYO, Jul 04 (News On Japan) - Japan's Ministry of Health, Labour and Welfare has released the results of its "Fiscal Verification," a process conducted every five years to estimate the future levels of public pension benefits. The ministry has decided to withdraw its proposal to extend the national pension contribution period by five years in the upcoming pension system reform.

In this fiscal verification, a simulation was conducted to evaluate the impact of extending the national pension contribution period by five years, changing it to 45 years until the age of 65.

However, the Ministry of Health, Labour and Welfare has announced that it will not proceed with this change in the next pension system reform, citing an improved financial outlook compared to the previous verification five years ago.

The proposal to extend the national pension contribution period by five years had faced opposition, as it would increase the basic pension benefit amount but also raise the contribution burden by approximately 1 million yen over the additional five years.

Source: ANN

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