News On Japan

Plan to Raise Basic Pension Dropped Ahead of Election

TOKYO, May 09 (News On Japan) - The Japanese government’s long-anticipated pension reform plan is at risk of being significantly watered down, as the core proposal to raise the basic pension appears to have been dropped from the bill currently under deliberation in the National Diet.

Originally positioned as the centerpiece of the five-year pension system review, the proposed increase in the basic pension was meant to address projections showing a steady decline in future pension payouts. According to a 2024 fiscal review by the Ministry of Health, Labour and Welfare, if the current economic trajectory continues, the average pension benefit ratio—currently 60% of the average salary of 370,000 yen—will fall to around 50% by fiscal 2057.

What raised greater concern was the sharp projected drop in the basic pension, the portion of the system paid to all citizens regardless of employment history. The ministry forecast a nearly 30% decrease in basic pension value over the next three decades under typical economic growth, primarily due to prolonged deflation and the inability to lower payouts during that time. This has led to concerns that the burden of past inaction is being shifted onto younger generations.

To address this, the government initially considered supplementing the shrinking basic pension using funds from employee pension reserves, which are primarily built from contributions by company workers and civil servants. This measure, while aimed at helping all citizens, would have resulted in lower benefits for a portion of current employee pension recipients. A health ministry official noted the reform would only work if politicians could convince the public to accept the sacrifice for future generations.

However, with a House of Councillors election scheduled for the summer of 2025, ruling party lawmakers—especially those in the Liberal Democratic Party—feared voter backlash over the perceived “diversion” of employee pension funds. Facing political pressure, the government ultimately removed the basic pension hike from the bill.

Commentators have criticized the retreat, arguing that political short-termism is undermining efforts to make the system sustainable amid an aging population. Inoue, the anchor moderating the discussion, pointed out that while everyone understands the reforms would involve some pain, political leaders appear unwilling to confront voters with hard truths ahead of elections.

TBS political analyst Hoshi observed that the proposal would have raised national pension payments—often collected from self-employed individuals, who tend to support the LDP—while reducing benefits for company workers, who are typically less partisan. He noted this dynamic made the plan politically sensitive.

With current prices rising, many retirees depending on national pensions—approximately 60,000 yen per month—face increasingly difficult living conditions. Yet the reforms needed to support them have now been delayed.

Even alternative funding methods, such as extending the contribution period for basic pension eligibility from 40 to 45 years, were ultimately shelved due to concerns about increasing the long-term burden of social insurance payments.

The failure to secure a basic pension increase is expected to hit the so-called “employment ice age generation” the hardest. These are people who graduated during the post-bubble economic slump and struggled to find stable jobs, often lacking sufficient employee pension contributions. As a result, many rely heavily on the basic pension in retirement.

Support for this demographic was a key rationale behind launching pension reform in the first place, and critics argue that abandoning the core proposal now only further postpones meaningful solutions.

Source: TBS

News On Japan
POPULAR NEWS

Akie Abe, widow of former Prime Minister Shinzo Abe, visited the Kremlin on May 29th and met with Russian President Vladimir Putin. During the meeting, Akie was seen tearfully listening to Putin’s words, reflecting the emotional nature of their exchange. Following the conversation, she was invited to ride in Putin’s official limousine to the Bolshoi Theatre, where the two attended a ballet performance together.

A gas cylinder recovered from the scene of an explosion in Tokyo’s Edogawa Ward bore a stamp indicating it was manufactured in November 1964, according to investigative sources. The blast, which occurred on May 27th at a construction site, injured 10 people.

Every year, the “Salaryman Senryu” competition captures the mood of the times through humorous verse, and this year’s top ten results were announced on May 29th.

Osaka University has announced it will accept up to 100 medical researchers from the United States in response to a policy by the Trump administration that suspended the acceptance of international students at Harvard University.

Prime Minister Ishiba met with Montenegrin Prime Minister Spajic in Tokyo on May 28th during the latter’s official visit to Japan, marking what both leaders described as a historic occasion.

MEDIA CHANNELS
         

MORE Politics NEWS

Prime Minister Ishiba met with Montenegrin Prime Minister Spajic in Tokyo on May 28th during the latter’s official visit to Japan, marking what both leaders described as a historic occasion.

The Ministry of Agriculture, Forestry and Fisheries has temporarily halted new applications for discretionary contracts to purchase rice from government reserves, Agriculture Minister Koizumi announced on May 27th. The decision comes after applications for 2022-harvest rice reached the quota limit of 200,000 tons.

Japan’s Minister of Agriculture, Forestry and Fisheries Koizumi announced that 19 companies have applied to purchase a total of 90,824 tons of government reserve rice under a discretionary contract framework. He added that distribution could begin as early as May 29th, with sales expected to start in stores during the first week of June.

As rice prices hit historic highs, the government is moving to counter rising costs by offering reserve rice to major retailers at a target price of around 2,000 yen for 5 kilograms, Agriculture Minister Koizumi announced on May 26th.

The Japanese government will begin selling its stockpile of rice directly to major retailers, aiming to put 5-kilogram bags on supermarket shelves for around 2,000 yen (before tax) as early as early June, Agriculture Minister Koizumi announced on Monday.

A revised Family Registry Act requiring kana (phonetic reading) to be included alongside names in the official family registry came into effect on May 26th. Postcards listing the planned kana readings will now be sent by municipalities to all residents across Japan.

An event commemorating the 63rd anniversary of the founding of the 10th Division of the Japan Ground Self-Defense Forces was held on Sunday, featuring shooting drills and other training exercises as part of the program. The training was open to the public, allowing visitors to observe the drills firsthand.

The Israeli military has fired warning shots at a diplomatic delegation visiting the West Bank, including a Japanese official, during a tour of the Jenin refugee camp on May 21st. Although no one was injured in the incident, the move has drawn sharp criticism from several countries.