News On Japan

This Is the Pension After 40 Years at a Company

TOKYO - A 65-year-old man who spent 40 years working for a company was shocked to learn that his pension would amount to 168,000 yen a month, raising fresh concern over whether retirees in Japan can live on public pension payments alone.

The man said he was stunned after receiving a notice from the Japan Pension Service showing that his pension would total about 2.01 million yen a year, or 168,000 yen a month. The figure, however, is the gross amount before taxes and social insurance premiums are deducted. His actual take-home income is expected to be around 140,000 yen to 150,000 yen a month.

The amount is not unusually low. According to data from the Ministry of Health, Labor and Welfare, the average monthly employee pension received by male former company workers aged 65 and older is about 173,000 yen.

At the same time, a household survey by the Ministry of Internal Affairs and Communications shows that jobless couples aged 65 and older face a monthly shortfall of around 40,000 yen when relying only on disposable income. The man said he felt it would be difficult to stop working completely and was considering taking occasional part-time jobs.

The case drew a wide range of reactions from the public. Some noted that pension payments are not decided suddenly at age 65, as projected amounts are sent out regularly, and argued that with average life expectancy rising sharply, pensions are more likely to decrease than increase. They said people should prepare early for retirement through savings and maintaining their health rather than depending solely on pension payments.

Others said the debate should not focus only on the pension amount, noting that supplementary pensions, various insurance systems and public benefits also need to be considered. They said Japan's retirement system is more complex than it appears and called for more information to be presented alongside such reports.

Some retirees said they were living on even smaller pensions. One person said life was possible despite having little financial leeway, as long as savings and asset management were combined with pension income. Another said a pension of this level after around 40 years as a company employee was not unusual, adding that health insurance premiums and other costs can become burdensome after retirement, making it necessary to build up funds for old age.

Others pointed out that household spending often includes relatively large amounts for transportation, entertainment and social activities, saying the shortfall may reflect spending to enjoy life rather than only essential expenses. They said finding ways to enjoy retirement without spending much money could also be an option.

Some comments focused on the gender gap in retirement security. One woman said her pension was under 100,000 yen a month because marriage, child-rearing and nursing care responsibilities had limited her ability to work. While she said she did not regret having children, she said women often face a harsher reality in old age because raising children can reduce their pension entitlements.

Several respondents said they had been told for decades that pensions alone would not be enough in retirement. They said the importance of savings and private investment had long been emphasized, and that retirement funds should have been prepared from a younger age.

Source: 3分でわかる時事ニュース速報

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