Financial care for pensioners in Japan today has become a noticeable burden on the budget, because now this country occupies one of the first positions in the number of elderly people in the country.
Of almost 127 million people, about 25% are pensioners. Moreover, this trend will only grow in the future, which does not have a positive effect on the national budget.
Nevertheless, the Japanese are not afraid to face old age, realizing that they are not threatened with poverty, and old-age payments will be sufficient for normal living. The state has already taken measures that will make it possible, even in the most difficult times of crisis or other unfavorable situations, to provide social protection to older people for several years to come.
But not everywhere the Land of the Rising Sun can offer such a wonderful old age, because there are always nuances and statistical data that show a less clear, rosy picture.
Structure of the Japanese pension system
Features of the Japanese pension system: what types of pensions are there?
Pension benefits appeared in the country in 1945. Initially it was called public, and the amount consisted of:
- 30% - state fund,
- 70% - transfers from entrepreneurs and the working population.
This value was not constant; they paid with a delay and were not stable.
In 1986, they carried out a reform - they created the Social Insurance Fund, which was based on a funded system. It allowed us to collect enough in assets to cover payments for five years. This protects pensioners from the crisis. According to the law, all residents from 20 to 59 years old are included in the system, and they pay contributions to the Pension Fund.
The amount of benefits is growing, but they are not enough for a prosperous life. Japanese citizens save for old age, setting aside 10 to 30% of their monthly income. For one family of pensioners, the average savings are 23.94 million yen (more than 200 thousand dollars). It is possible that in the future the state will provide a living wage for people with low incomes, while the rest will live on their savings.
General information
Elderly people in the Land of the Rising Sun began receiving regular financial assistance from the state in 1942. A third of payments under the “Public Pension” program were made from the state budget. The remaining part was formed through contributions from employed citizens, as well as individual entrepreneurs.
In fact, Japan's pension system began to work only after the reforms carried out in 1954, when the country's economy, which had emerged from the post-war crisis, stabilized. The norms of the updated Japanese legislation guaranteed monthly payments to all members of the population who are working and have crossed the age limit of 60 years.
The Pension Fund (PF) was subsidized by the state. The bulk of the fund included contributions from employers and working citizens (in a 50/50 ratio).
The rate of tax contributions to the Pension Fund gradually increased:
- in 1961, 3.5% was levied on wages;
- by 1996 the rate had increased to 16.5%.
Today, the assets of the Japan Pension Fund exceed 170 trillion yen ($1.61 trillion).
Types of old-age pensions in Japan
Japan's old-age pension consists of three types (nenkin):
- Professional - for those working officially. Calculated from monthly payments - 18.3% of salary. The company and the employee transfer equally until old age, but receive only from the age of 65. Some organizations, in order to pay less in the pension fund, change their working hours - 29.5 hours per week.
- State (basic) - for the self-employed and companies with fewer than 5 employees. They make fixed payments to the Pension Fund, in 2019 this is 16.4 thousand yen ($150). There is a system of exemption in place - full or partial, but this will further reduce the amount of payments.
- One-time benefit - paid by the company. Depends on salary and working hours.
Important from BBQcash: Women who work at home do not pay contributions, but also receive a basic pension. It is believed that this is how they helped their husbands.
If a spouse dies, they may be entitled to some portion of the husband's work benefits.
Life of Japanese pensioners
The Financial Services Agency has calculated that elderly spouses receive about 209,198 yen monthly and spend 263,718 yen. The difference is covered from the couple's savings, but some families do not have financial reserves. In addition, there may be situations where special care is required. State provision of pensions is becoming increasingly difficult, so economists threaten to make the situation worse. At the same time, statistics confirm that Japanese retirees consider themselves happy centenarians.
Now in Japan there are more than 40 thousand people over a century old. Every 5th pensioner is over 100 years old. Some analysts are confident that soon every 2nd pensioner will be over 100 years old. Having become a pensioner at 65, a person begins a new life, free from previous obligations. Of course, many work part-time to have more available funds, but in general, Japanese people who have their own real estate can afford a comfortable life and travel around the world.
Older Japanese people prefer to travel around Southeast Asia. Occasionally, wealthy citizens go to see Europe. Many are active, learn new things, engage in domestic tourism, master crafts, and communicate with people much more than during the period of active work. Most elderly Japanese keep their bodies in excellent shape by exercising regularly. Recently, the Internet has become a good way to spend time. The network is used as a means of communication, a source of new knowledge and news.
The life of Japanese pensioners is filled with events
What age do people retire in Japan?
It is established by law that men and women can retire at 65 years of age. Must work for 10 years and pay insurance premiums. It is possible to leave 5 years earlier (the benefit is 30% less), or to work longer - up to 70 years (then the benefit becomes 42% more). An employee is entitled to an early pension if he:
- worked in hazardous industries;
- has special differences;
- was injured at work.
In the land of the rising sun, people live long, few are born, so the retirement age may be increased - 71 years. Those who want to work can continue to work - no one is stopping them, because... the state is interested in this. Special subsidies are provided to companies for workers over 65 years of age.
The company does not retire before 60, but each company sets its own rules for employees after 65:
- offer a place with less pay;
- fired;
- work under the same conditions.
Interesting from BBQcash: In Japan, every fourth person works after 65 years.
There are many vacancies for retirees. They want to work and be useful.
How are insurance premiums paid?
In Japan, the fiscal year begins on April 1st. At this time, citizens of working age receive envelopes full of national pension accounts. Payments can be monthly or quarterly. Payment of insurance premiums is made at the post office, in stores or at a bank. Payment receipts should be kept.
Sometimes companies, in order to avoid the cost of paying insurance premiums, can hire part-time workers. The fact is that if an employee works 75% or more of full time, then the employer is obliged to pay 50% of the employee’s mandatory payments. If, with a 40-hour work week, they are hired for 29.5 hours or less, then in this case the pension is formed only at the expense of the employee himself. In fact, it turns out that the employee has to pay larger monthly payments, and as a result, such employee will receive a significantly smaller pension.
A similar situation may arise when an employee is hired for two separate jobs, while opening two separate accounts for transferring wages. In this case, contributions will have to be paid from two salaries, while the employer will be excluded from his part of the payments.
Pension size in Japan
The benefit is calculated once and then does not change - it does not depend on age. The main calculation is 65 years, and the rest of the changes come from it:
- 60 - 70% of calculated;
- 63 - minus 12%;
- later 65 - plus 0.5% per month;
- year—an increase of 8.4%.
- 70 years old - 142% of the minimum benefit.
Income tax is not paid on pensions if:
- this is the only income;
- the pensioner continues to work - less than 6 hours a day and two decades a month.
Pension size in Japan in 2021:
- minimum - 65 thousand yen ($600) or about 40% of the minimum salary;
- average - 159.6 thousand yen ($1500) - 60% of the average salary.
Let's compare the amount of benefits with other countries:
- England - $830;
- China - $353;
- Korea - $190.
The Japanese believe that for a good life you need $1000 a month. Family helps the elderly. If it is not there and incomes are low, then there is a risk of becoming a social outcast. There are entire areas of senior citizens. The state pays the minimum, but helps with places to stay overnight and free food. This does not provide a decent life.
The size of the Japanese pension
To understand who gets paid and how much in Japan after retirement, you need to understand at least a little about the state’s pension system. Any of the social spheres of material support has its pitfalls and nuances, without knowing which you can remain in a foreign country with a small amount of income in old age.
The minimum pension in Japan in 2021 is about 40,000 in rubles and applies to the category of citizens of the country who received their basic old-age pension at the age of 65. Upon reaching retirement age, the state begins to pay exactly this amount if a person cannot confirm his official work activity during his life or does not have a funded/insurance part of the pension.
What is the average pension in Japan in 2021 for citizens depends on all three components - basic minimum payments from the state, professional savings and the size of a one-time payment, depending on the number of years of work experience and average salary. The majority of the elderly population in Japan receives on average 48,000 - 54,000 rubles per month in retirement.
The size of the professional accumulated part of the pension can increase the final amount of payments in the range of 30-100 percent. For example, a number of military personnel in Japan receive up to 40 percent of their historical monthly salaries after retirement. Thus, they can count on a pension of 80,000 - 120,000 rubles.
Despite such high numbers, not all Japanese can count on them. Based on the official statistics of the country’s Ministry of Labor and Employment, almost a third of all pensioners in the country, after retirement, continue to work in not the simplest industry - agriculture. Elderly people spend whole days in the fields and participate in the process of growing rice. The main goal that the Japanese pursue as they continue to work is to provide a full life for their grandchildren and children, to acquire property and personal transport for them.
Several hundred thousand Japanese have failed to make significant savings in their lifetimes. In this regard, 1/5 of the country's elderly population belongs to the poor and is below the poverty line. On the streets of Japan you can meet old people who live right there because they were left without housing or could not save up for it during their lives.
Japanese pension - big or small?
By Russian standards, the Japanese pension seems large even in the case of a lower pension under the state pension system. Still, this is almost half a million rubles a year!
Can the average Russian pensioner count on that kind of money? The answer, I think, is obvious.
But it would be a mistake to look at Japanese pensions from a Russian perspective. It is necessary to understand whether it is sufficient in Japan. To do this, you need to compare the pension with Japanese prices.
And people who made contributions only through the state pension system will have to live quite modestly in old age. 779,300 yen per year is approximately 65 thousand yen per month. In general, this money should be enough to pay for utilities and food, but it won’t be luxurious. And if you haven’t managed to buy your own home in your life, then you’ll have to forget about life in Tokyo, since in the capital renting even a tiny one-room apartment will cost at least 70-80 thousand yen per month (the purchase will cost tens of millions). In general, the chances are high that in old age you will have to enjoy a quiet village life.
The Social Security system will allow you to receive a much larger pension. But here everything depends on the success of your career. On average, the Japanese start their careers with 200 thousand yen per month, and by the end of their career, if everything goes well and they manage to achieve a leadership position, they can count on 500 thousand per month. Representatives of complex technical professions can receive this kind of money within 5-10 years after starting work. Such people will be able to receive an impressive pension, which will allow them not only to live freely in Japan, but also to travel around the world.
How to apply for a pension in Japan for a foreigner
Foreigners are granted a Japanese pension if they have worked for 10 years or more, made payments and received a residence permit. They contact the Pension Fund for an appointment - the place of residence at this time is not important. They receive a one-time payment when leaving the country. The amount depends on how long the pensioner worked.
Table from BBQcash:
| Duration of payment of contributions, in months | Amount, in yen |
| 6-12 | 49 230 |
| 12-18 | 98 460 |
| 18-24 | 147 690 |
| 24-30 | 196 920 |
| 30-36 | 246 150 |
| More than 36 | 295 380 |
The application period is two years from the date of departure. When receiving this payment, this time is not included in the length of service. There is no agreement on cooperation in the field of pensions between Russia and Japan, so work is not taken into account here.
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Starting from handrails always and everywhere (including in public toilets) and ending with a general soft and protective attitude. Until old age, people in Japan remain human if they want - they have the opportunity to drive a car (some of them drive sports cars like Celica, although the majority drive simple subcompact cars), talk on a cell phone with a simplified keyboard and large buttons.
In simple shoe stores there is always a shelf with special shoes for the elderly with a simplified fastener, like this
A bag with 4 wheels is much more convenient than conventional trolley bags, since you can lean on it. But even more convenient is a hybrid of a bag, trolley and chair for relaxation. Hard peasant work literally bends many Japanese old men in half, especially women, and with such carts it is much more comfortable for them to walk. Tired - I sat down. They come without a chair, but with a high, durable handle, reminiscent of hospital devices for those who have difficulty but need to walk.
And Japanese old men also ride special mopeds. Well, that is, I call them mopeds, in fact they are 4-wheeled electric cars that reach speeds of up to 6 km/h. Compared to self-propelled chair bags, there are very few of them - and no wonder, they are relatively expensive - about 4 thousand dollars.
Elderly people with walkers in front of them or even in wheelchairs are a rarity on our streets. This won't surprise anyone in Japan.
It was impossible to take my eyes off the chair with the navigator and on-board computer that I saw in one of the Japanese cities. Need I clarify that a person in such a vehicle does not require outside assistance...
How can an elderly person use such a “sophisticated” gadget (a fashionable non-standard technical device - Ed.) as a computerized chair? “And it’s very easy to operate,” explained Mrs. Iwaki Suzuki and made herself comfortable in it. — Using the keyboard you set a route, the navigator immediately “sees” it. And you go wherever you want.” Really, what could be simpler? For those whose age and health allow them to mostly move on their own two feet, scientists have come up with a device for walking. It is similar to a scooter, but has two wheels and two handrails to make it easier to hold on to. You stand on a step, lean forward, and it moves itself: the greater the slope, the higher the speed. To stop, just lean back.
For the completely helpless, bedridden, a prosthetic arm was made at the Research Institute of Industrial Science and Technology, which is considered the “scientific center” of Japan. This device is attached to a wheelchair. To set it in motion, just breathe on the touchpad. After all, even a paralyzed person needs to be left alone at least for a while, they believe in Japan. What if he wants to drink exactly at the time for which he let his assistant go?
Unlike other developments, the “hand” is completely Japanese. They plan to put it into production in two years. Estimated cost - 800 thousand yen. But those who need a prosthesis will get it at a big discount. Otherwise, why put into production something that people cannot afford, the developers argue.
Assistant of the future
We are envious of older Japanese people who do not feel thrown out of life when they stop working. Perhaps the reason is that 25% of the population are pensioners. Or maybe because they usually stop working at the age of over 70. And they sigh with great relief that they don’t have to do this anymore.
In addition, a new type of divorce has appeared in Japan - after retirement. And if for some reason the property goes to one of the spouses, the other will move to social housing.
For a pension, which is considered their minimum, it’s 28 thousand yen; you can’t withdraw anything else. By the way, for example, in Tokyo, there is too much social housing, and it is mostly empty. Therefore, pensioners are settled there after the first application to the municipality. Pets are not allowed. But in Japan they also solved this problem by inventing a special robot - a seal with anti-allergenic fur that responds to stroking, to changes in lighting in the room and makes cute sounds.
At the National Museum of Future Science and Innovation in Tokyo, everyone can cuddle a seal. In addition, the world famous robot Asimo is entertained there for 600 yen for adults and 200 yen for children under 18 years of age.
In the first half of the day he gives performances - dancing, playing football and even talking. Its developers (the famous Japanese automobile concern) intend to move even further and create a household assistant, but for this they need to teach the robot to feel.
What do Russian pensioners do? They sit on a bench at the entrance, wash their neighbors’ bones and watch TV series. How pensioners spend their time in Japan, nobody-s-fool told.
We recently discussed that the Japanese are the longest living nation. If we take into account the fact that the average life expectancy in Japan is about 80 years, then with the help of simple mathematical calculations we can understand that after retirement a person has another 15-20 years of relatively free life. But there are people who live more than 100 years. How do people fill this time? This question has been bothering me for a long time. At least because someday I myself will become a retired grandmother. Well, and on top of everything else, I myself have a grandmother. An incurable workaholic with over 45 years of work experience, at 62 she decided to retire. It seems that many Soviet people did not know how to live for themselves . So is my grandmother. Her whole life was devoted to work and raising first one child, then another. As a result, the child has long been dead; the granddaughter first went to another city to study, and then left the country altogether. And then there was no work. I was very worried about how she would perceive such changes and how she would find new meaning in life. The first six months were very difficult: getting up out of habit at 6 am, constant mental tossing about “what should I do?”, which resulted in a global renovation of the apartment several times, pickling preserves and then distributing them to all relatives, because... It is unrealistic to eat such volumes alone. And although there was no great need for all this, I always had a positive attitude towards her “projects”, because... a person needs to constantly do something so as not to sour. A year or two after her retirement, she said that she only now realized how great it was to not work, sleep until 9 and do what you want . But in general, she looks like an ordinary pensioner from a small Russian town, whose daily life includes visiting friends and relatives, watching all kinds of TV series and inventing at least some activities for herself. After this picture, Japanese retirees give a different impression: most often they are very active people who enjoy life. Sometimes it seems to me that these people have more energy than me. In an attempt to figure out what the main difference between a Japanese pensioner and a Russian pensioner is , I recently talked with my old friend, Yamashita-san, who has been retired for 12 years and, at 75+, continues to actively volunteer. Yamashita-san, photo taken 2 years ago, 75 years old The first thing I asked was whether he was waiting for retirement or for him work was also the main meaning of life? And he, laughing, said that he had been waiting for this. He still worked in the old Japanese system of lifelong employment, i.e. I worked for the same company all my life. Salaries and tasks changed, but the company was the same. And for the last 3 months he has been looking forward to the start of a free life, as he calls it. The man earned his pension, fulfilled his duty to the state, and his children grew up. Now you can take care of yourself and do what you really want to do. Here I see the first difference between our pensioners. At the age of 60, it is rare for a Russian person to want to go to school, master a craft, or take up a new hobby. The Japanese finally find time to make their dreams come true: someone, tired of the fact that a week’s vacation is the maximum they’ve had in their lives, goes to travel the world; someone goes to photography school, learns to cook European cuisine or learns languages. About 7 years ago, when I was a volunteer at an international center, in my group of Japanese there were 2 Japanese grandfathers, 65 and 70 years old, who came to Russia to learn Russian. They, as expected, received student cards, because... they were officially students of the Russian School. But we often had problems in museums: they didn’t want to give grandfathers a student discount. “What kind of students are these?” they told me? “These are pensioners. And we don’t have any discounts for pensioners. And we don’t need to poke at us with student cards.” Pensioners pay great attention to physical activity. Very often they join hiking clubs and go hiking and to the mountains together. During climbs, such pensioners often overtake me, which always surprised me greatly. After retirement, a Russian pensioner sharply reduces physical activity. Well, except for those who work hard at their dachas from April to October. Often excess weight at this age causes joint pain, shortness of breath, high blood pressure, and a person decides to leave the house less and lie down more, thus coping with pain and poor health. Over time, this ends up with the fact that even going to the nearest store requires a lot of energy and effort. Our conversation with Yamashita-san took place while climbing the hill. The round trip journey is almost 6 kilometers, and he makes such hikes 2-3 times a week. According to him, at this age the muscles weaken very quickly if they are not given the appropriate load. Therefore, several times a week, regardless of the weather, he goes to the mountains. In case of snow or rain, he has a good set of waterproof clothing and rubber boots. At 77 years old, he is also still an excellent driver. No concessions, because... Once you start to relax, returning to your old level of activity becomes more and more difficult. The Japanese generally pay great attention to maintaining good physical shape in old age. In addition to hiking, many also go to the pool or gym. In every gym there is at least one grandmother of about 80 who works out with small dumbbells. And we can’t even count the number of pensioners who walk. Volunteering. Yamashita-san has been actively volunteering for more than 10 years. He helps foreign students solve everyday problems, arranges excursion trips, edits translations of texts, resumes and coursework. Even a student who knows the Japanese language well often finds such help useful. He also helps with renting housing, moving, organizes various parties at his home, takes students to restaurants and is always ready to give advice on any topic.
Read more about volunteering by Japanese pensioners
Discussion in the magazine
aigol Very good story. I think Russian pensioners do not do the same for several reasons. The first is a chronic lack of money . Everyone knows what the pension is in Russia. my parents, if they didn’t work, would only have enough to pay the rent. Let alone a sports club or a swimming pool (which are quite expensive in the Moscow region), and even more so a trip abroad.
The second is early and permanently undermined health . I don’t know the exact statistics, but in our lifetime it is quite possible to retire for health reasons as early as 40 years old. I compare it with Korean pensioners - heaven and earth.
And the third is mentality . When hiking in the mountains, volunteering, and an active lifestyle are the rule around you, it’s easy to join this group, and the accessibility of such activities is higher. And when everyone around you is sitting on a bench, chatting about illnesses, and planning to die in a year or two, it is very difficult to imagine a different way of life.
Well, and probably the fourth is the habit of living for someone . For children, then for grandchildren. You don't need anything anymore. It is almost impossible to give pleasure or a gift to such a person. This turns into a family problem (I know from experience)
Several years ago I had the opportunity to visit the “Garden of Divine Love”
the Shin Ai En nursing home
in the city of Sapporo
is called when translated into Russian I remember that on the automatic glass doors, apparently especially for our arrival, they hung a cheerful poster: the then President Yeltsin was shaking hands with the now deceased Prime Minister Obuchi. The handwritten sign on the poster read, “Welcome to the Nursing Home!” With a fairly high level of pension provision and a falling desire of different generations to communicate with each other, coupled with dissatisfaction with their living conditions, the Japanese are increasingly turning their attention to nursing homes.
In addition, although life expectancy is increasing, unfortunately, the health of every single old person is steadily deteriorating - day after day.
The Japanese are looking for a way out of this situation in a variety of ways, including such unusual ones as, for example, the use of robots. A Japanese old lady can buy a special teddy bear that will talk to her at regular intervals (the vocabulary of such a toy may exceed that of her rapper grandson), ask her about life, the weather, and most importantly, listen carefully. And if the bear does not hear the answer to the question asked for, say, an hour (the settings are individual), then it will automatically send a signal to a special tracking station, which will call an ambulance to the old lady to check if everything is fine. Of course, no toy can replace human communication and medical care. So the Japanese old people are looking for monasteries like the “Garden of Divine Love.” Those who still feel well come to the “Day Care Group” themselves, those who cannot or do not want to live at home, but are still able to take care of themselves, occupy the “House of Social Protection”, and about 70 more elderly people who need constant care, become permanent residents of the Garden. Their average age is 82 years (the oldest is 102), all of them are seriously ill and 80 percent of them are women. The shelter enjoys a very good reputation due to the high level of provision with special medical equipment for Japan and the special care of the staff in the spirit of Christian traditions.
Although this does not affect the possibility of living in a nursing home, the entire management of Shin I En belongs to the Protestant community of Sapporo.
However, love for one's neighbor is not the only criterion by which one can get here. Although the state pays monthly 290 thousand yen (approximately 2.8 thousand dollars) for each of the 70 patients of the “Garden”, which allows to cover the salary costs for 30 service personnel, to be here, you have to pay a lot of additional money and endure sometimes many years queue. At the same time, Xing I En does not pay taxes and accepts donations from private donors every day - usually $400-500 per person per day. In shelters where the level of financial security is not so high, those wishing to receive guaranteed care and care in their declining years may encounter serious financial problems. It happens that you have to sell a house for which you have saved tens of millions of yen all your life, but which turned out to be of no use to the heirs who left for somewhere in the capital. By the way, it was in Shin Ai En
that I saw an example of how the Japanese violate their own instructions for the sake of the elderly: in the ward with an 82-year-old patient suffering from dementia, her husband lives, renewing his “guest visa” every 10 days and patiently waiting for his turn to the entrance to the “Garden of Divine Love”.
He goes home on an electric cart, which almost every pensioner here has and which for some reason every time causes me a sharp attack of pity - for our pensioners, who hope that in winter they will at least sprinkle sand on the ice at the entrance so that they can walk to the nearest bakery. Alexander Kulanov
__________________
~ The Japanese believe in three powers: the sword, wealth and the mirror.
The sword symbolizes the power of the weapon. Wealth is the power of money. The mirror is the power of self-knowledge. So, the power of the mirror is the most valuable of these three, they believe in Japan. Because only by looking in the mirror (knowing yourself), you find the truth. ~ I ♥ JAPAN * 何もしなければ、何も変われない (“if you do nothing, nothing will change.”) What do you think?!!
Standard of living for retirees in Japan
The standard of living of Japanese pensioners is quite high, and life expectancy is one of the highest in the world. Its average in recent years:
- 2010 — 82,9;
- 2016 — 83,98;
- 2017 — 84;
- 2019 — 84,2.
At this age they are completely healthy people, so they lead an active lifestyle:
- make tourist trips;
- are fond of yoga, meditation;
- swim;
- exercise on simulators, in sports sections;
- devote themselves to volunteer activities;
- study photography, cooking or acting;
- organize their own clubs and meetings with like-minded people.
In old age, they do not need to raise children or work, so the Japanese realize their dreams. This is available if sufficient funds are available. There is another part of the population without the necessary savings. These are poor old people who find themselves below the poverty line. They often live on the streets because they are homeless or unable to buy one.
Pension Fund
As already mentioned, the pension fund in Japan is quite large. However, the question remains open: why, having the same number of working population, cannot other developed countries create the same pension system as in Japan? Experts say there are two main reasons for this:
- The process of accumulating reserves has not yet been completed. And in the case of economic growth, the growth of the fund will not keep pace with the increase in social welfare.
- Countries do not change the system of automatic accrual of pension payments. Simply put, insurance premiums are automatically transferred as pension payments. Accordingly, the government has no reason to create a reserve savings fund.
Pensions in Japan are one of the highest in the world and all thanks to the savings fund, but it is also important to understand how the Japanese generally relate to money.
