The Social Security Council's pension subcommittee meeting on April 16 involved discussions about the impending reform of the public pension system in Japan. With the country facing the effects of a graying population and falling birthrate, the welfare ministry is under pressure to make necessary changes to ensure the sustainability of the pension system.
During the meeting, council members explored various scenarios as part of a financial verification process that occurs every five years, aiming to provide estimates for future benefit and premium levels. This evaluation, often referred to as a "health checkup" of the pension system, relies on demographic and economic projections to forecast the system's financial health and sustainability over time.
One key proposal put forth during the meeting was to extend the contribution period for the national pension by five years, making it a total of 45 years until individuals reach the age of 65. The goal of this extension is to address the challenges posed by an aging population and ensure a more secure financial outlook for the pension system. Additionally, discussions revolved around potential adjustments to benefit levels, premium calculations, and the inclusion of part-time workers in the employees' pension scheme to enhance the overall effectiveness of the system.