The purpose of this research is to investigate a present situation of the pension system and a issue of the low payment rate of the pension. The reason why the writer is interested in this topic is that the writer needs to understand the system as one of the people who need to pay a pension now and will live on my pension in the future.

1. The Japanese
Pension Problem

2. Outline
• Introduction
• Japanese Public Pension System
• Issues of the System
• Conclusion
• References

3. Kinds of the pension system
• Public pension system
- under state control
- payment obligation
- decided period of payment and receipt of pension
＊the U.S., England, Germany, France, Canada, New Zealand, Japan…
• Private pension system
- controlled by insurance companies
- can decide a period of payment and receipt of pension

4. Japanese Public Pension System
1. National pension
1. Employees’ pension
1. Mutual-aid pension
(government official, local government official,
private school teachers)

5. Japanese Public Pension System

6. Japanese Public Pension System
• Pay-as-you-go method
Present young generation Present older generation
Problem!!

7. Issue of the Pension System
Life expectancy
Birth rate
(The World Bank, 2014)
Aged society and a
low birthrate

8. Issue of the Pension System
Burden ↑
In 1985 In 2017

9. Issue of the Pension System
7,100
8,400
13,300
15,100
16,490
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1986 1990 2000 2010 2017
Pension Contribution
(Japan Pension Service, 2017)

10. Burden and Benefit
by Generation
1940 Born 1950 Born 1960 Born 1970 Born 2000 Born
Contribution 3 million 5 million 7 million 10 million 17 million
Benefit 14 million 13 million 14 million 15 million 25 million
Ratio 4.5 2.7 1.9 1.6 1.5
(Japan Pension Service, 2012)

11. Worries for Young Generation
have to pay more
pension contribution
in the future…?
can get fewer
pensions when we
get old…?
lose
money…?

12. High Unpaid Rate
• Average payment rate was only 58.2% in 2015
• Contributors Rate in 2005-2007
Japan… 67.4%
Sweden… 87.5%
The U.S…. 79.3%
England… 76.7%
France… 76.7%
The insurance is too expensive to pay
They do not have enough knowledge

13. If the situation continues…
• Economy will decline
• Pension contribution will increase more
• New young generation will not be willing
to pay the contribution
• The Japanese government has to use the
state contribution more
• The reserve fund will have run out
• Finally, the pension system will break up

14. The government’s measure
Insurance income
+State contribution(1/2)
(+Reserve fund)

15. Conclusion
• The people of Japan need to have right
knowledge about the pension system
• A fundamental reform need to be
considered
• Measures against aged society with low
birthrate are important

16. References
Japan Pension Service. (2014). Hokenryo futan no sikumi [The structure of insurance contribution]. Retrieved March 5,
2017, from http://www.nenkin.go.jp/service/seidozenpan/hokenryo-futan/20140710.html
Japan Pension Service. (2017). National pension system. Retrieved March 5, 2017, from http://www.nenkin.go.jp/
international/english/nationalpension/nationalpension.html
Ministry of Health, Labour and Welfare. (2009). Hokenryo no noufu houhou, minou no riyuu ni tsuite [The payment
way of the insurance and reason of arrears]. Retrieved March 6, 2017, from http://www.mhlw.go.jp/
toukei/itiran/shakai_hoken/k-nenkin/h11/gaiyo06.html
Ministry of Health, Labour and Welfare. (2013). Pension bureau. Retrieved March 6, 2017, from http://
www.mhlw.go.jp/english/policy/pension/pension/dl/pension _bureau.pdf
Ministry of Health, Labour and Welfare. (2016). Kokumin nenkin hokenryo no noufuritsu [The payment rate of nation
pension insurance as of the end of October 2016]. Retrieved March 6, 2017, from http://
www.mhlw.go.jp/file/04-Houdouhappyou-12512000-Nenkinkyoku-Jigyoukanrika/0000146169.pdf
The World Bank. (2014a). Birth rate, crude (per 1,000 people). Retrieved March 5, 2017, from http://
data.worldbank.org/indicator/SP.DYN.CBRT.IN?locations =JP&view=chart
The World Bank. (2014b). Life expectancy at birth, total (years). Retrieved March 5, 2017, from http://
data.worldbank.org/indicator/SP.DYN.LE00.IN?locations =JP&view=chart