The Pension in Japan and the lifestyles of Japanese seniors
Public pension in Japan was introduced from 1942 the Name of the public she received, as only a third were subsidized by the government. The remaining two-thirds were contributions of employees and employers. Last, and very important, pension reform in Japan was conducted in 1985, Her greatest achievement – the introduction of basic pensions. With 1986, any citizen, regardless of ethnicity, sex, occupation and income level, is entitled to a basic old age pension, disability and in case of loss of breadwinner.
Today is quite complicated retirement security of Japan can be divided into 2 main levels: 1st – basic pension, 2nd – state (public) and professional. In addition there are a number of options of different types of pensions. But the Foundation alone – state social insurance.
Basic pension covers all people and is established each year in the solid amount increases in accordance with increase of prices over the last year. It is prescribed to 65 years. Thus a flexible scheme that allows you to retire with 60 years, but in this case, the citizens get it in a cut (25%). For continuing to work after age 65, the pension is increasing annually. For 70 years the pension is increased by 25%. The average pension in Japan – about 67 thousand yens( 700 USD).
2nd level consists of occupational pensions. These pensions are financed by contributions of employers and employees in proportion to average monthly earnings (about 5% of the salary of the employee) and mandatory pension insurance. Pensions depending on what pension system belongs to the recipient, and for how many years he has contributed. For example, former civil servants receive approximately 2/5 of the former average monthly income. The average pension in Japan is 60% of earnings.
In addition, is terminated receives a lump sum equal to his salary multiplied by the number of years worked. We should not forget about savings for old age.
What do the Japanese pensioners, after retirement?
The Japanese are the most long-lived nation. Japan has a large number of healthy people, whose age exceeded one hundred, the average length of life in Japan – 80 years. This means that retired people has about 20 (or more) years of a free life. How Japanese retirees spend these years?
Japanese retirees – hyperactive people who love and know how to enjoy life. They see retirement as an opportunity to finally fulfill a longtime dream: they travel the world, go to the photography school, learn cooking dishes of other Nations, grow fresh vegetables, doing volunteer work or learn languages. Great value Japanese pensioners attach to physical activity and maintaining good physical shape. They can be found in Hiking clubs, pools and gyms. They go with friends Hiking or just walking.
But not all residents of Japan are rejoicing, having reached retirement age. Many of them need work, since public pensions are not enough. 1/3 of working pensioners are engaged in agriculture, the rest – in the service sector. 1/5 of pensioners living below the poverty line. Some even have to sleep under the open sky and rely on humanitarian agencies distributing free food. Japan – the world leader by quantity of suicides, of which one third were people of retirement age.
From this it follows that the current pension system in Japan is on the verge of a serious crisis. And many Japanese are already from a young age begin to pay close attention to personal savings, not really hoping for the state.