Economic Security of Older Economic Security of Older Persons in JapanPersons in Japan

3 Oct. 20023 Oct. 2002

Michiko MukunoMichiko Mukuno

Cabinet Office, JapanCabinet Office, Japan

The Aging PopulationThe Aging Population-Projections--Projections-(Figure 2-1-2) (Figure 2-1-2)

10.3%

26.0%

17.3%

32,772

22,005

12,468

0

5000

10000

15000

20000

25000

30000

35000

40000

50 55 60 65 70 75 80 85 90 95 00 05 10 15 20 25 30 35 40 45 50

thou

sand

per

sons

0%

5%

10%

15%

20%

25%

30%

35%

40%

Population ages 65-74 Population ages 75 and olderPercentage of ages 65 and older Percentage of age 75 and olderTotal population

(160000)(160000)

(140000)(140000)

(120000)(120000)

(100000)(100000)

(80000)(80000)

(60000)(60000)

(40000)(40000)

(20000)(20000)

Population of the AgedPopulation of the Aged(Total Population)(Total Population)

yearyear

Average annual income (thousand of yen)Average annual income (thousand of yen)

Per householdPer household

(1999)(1999)

Per household memberPer household member

(Average number of (Average number of household members)household members)

Households of Households of elderly personselderly persons

3,2893,289 2,1872,187 (1.50 person) (1.50 person)

Total Total householdshouseholds

6,2606,260 2,1982,198 (2.85 person) (2.85 person)

Income of Households of Aged Persons Income of Households of Aged Persons (Chart 2-2-12)(Chart 2-2-12)

Percentage of Elderly who are in Work ForcePercentage of Elderly who are in Work Force (Figure 1-1-17)(Figure 1-1-17)

41.9

16.013.8

20.4

5.9

32.9(21.8)

(30.5)

(9.5)

05

101520253035404550

65 years orolder

65-74 years old 75 years orolder

(%)MaleFemale(Total)

Elderly Woman Working in a FactoryElderly Woman Working in a Factory

Elderly Women Working Part-Time in a Day Care CenterElderly Women Working Part-Time in a Day Care Center

Group of Elderly Men Who Started a New Group of Elderly Men Who Started a New Business in the Area of Care TechnologyBusiness in the Area of Care Technology

Elderly Men Enjoying Making CeramicsElderly Men Enjoying Making Ceramics

An Older Couple Enjoying Social DancingAn Older Couple Enjoying Social Dancing

Elderly Income Level by Income Category Elderly Income Level by Income Category (Figure 1-1-9)(Figure 1-1-9)

1,145 1,425584

1,7291,809

1,569

766 800 721

140282221

(3,164 )(3,546 )

(2,400 )

(1,078 ) (1,175 ) (946 )

0500

1,0001,5002,0002,5003,0003,5004,000

65 yearsor older

65-74yearsold

75 yearsor older

65 yearsor older

65-74yearsold

75 yearsor older

Male Female

thou

sand

yen

Earned income Income from propertySocial security benefits Other income(Total)

Views on Desirable Retirement Age Views on Desirable Retirement Age (Chart 1-2-8) (Chart 1-2-8)

Views of people Views of people ages 40-59ages 40-59

Views of people Views of people age 60 and overage 60 and over

By about age 60By about age 60 18.2%18.2% 8.2%8.2%

By about age 65By about age 65 39.4%39.4% 30.0%30.0%

By about age 70By about age 70 10.0%10.0% 22.1%22.1%

By about age 75By about age 75 0.4%0.4% 4.3%4.3%

Continue to work regardless Continue to work regardless of age while in good healthof age while in good health

31.2%31.2% 33.4%33.4%

Other / Don’t knowOther / Don’t know 0.8%0.8% 2.0%2.0%

Structure of the Public Pension SystemStructure of the Public Pension System

Employee pension fund

Tax-qualified pension plan

(Substitutive portion)

Employee pension insurance scheme

Mutual aid pension

National pension system (Basic pension)

(Dependent spouses of employees, others)

(Self-employed persons, others)

(Salaried workers in private sector) (Government employees,others)

National pension fund

Guaranteed contribution-based

pension

<Defined benefit type corporate pension>

Amount of Payment from Pension SystemAmount of Payment from Pension System

Basic PensionBasic Pension

67,017 yen / month (standard) 67,017 yen / month (standard)

(equivalent $550)(equivalent $550)

Total Total (Basic Pension + Employees’ Pension System)(Basic Pension + Employees’ Pension System)

Pensioner receives approximately 60% of Pensioner receives approximately 60% of

annual income earned when workingannual income earned when working

Elderly Income Level by Income Category Elderly Income Level by Income Category (Figure 1-1-9)(Figure 1-1-9)

1,145 766

221

1,729

3,164

1,078

0

500

1,000

1,500

2,000

2,500

3,000

3,500

65 years or older 65 years or older

Male Female

thou

sand

yen

Earned income Income from propertySocial security benefits Other income(Total)

Percentage of people Percentage of people without incomewithout income

MaleMale FemaleFemale

4.8%4.8% 17.017.0%%

Our challenges are …Our challenges are …

To improve the economic situation of older To improve the economic situation of older

womenwomen

To provide a balance between benefits and To provide a balance between benefits and

contributions among different generationscontributions among different generations