A government strategy drafted with Japan's graying society in mind proposes increasing the mandatory ages for retirement and eligibility for medical services, according to the draft outline obtained by Kyodo News.

The new plan, to be finalized Dec. 21 by the Cabinet, follows a review of the first outline, which was set in 1996 under the basic law on measures for the nation's aging society. For several years to come, the outline will serve as a guideline for formulating policies.

Japan's population is aging at an unprecedented speed -- faster than any other major industrial nation.

According to the outline, measures should be taken "to lift the mandatory retirement age or allow other forms of continuous employment so that those who wish to work can do so until 65." It also emphasizes the need to eliminate age discrimination in the workplace.

At most companies in Japan, the mandatory retirement age is 60. Only a few firms let workers stay on longer.

The outline also encourages various public pension plans be unified based on the form of employment and urges that the freeze on pension premium hikes be lifted to relieve younger generations of having to shoulder a heavier financial burden.

Ahead of the government's planned re-evaluation of fiscal policy targets, due in 2004, the outline calls for establishment of a sustainable, secure pension system based on the principle of sharing the financial burden equally across generations.

The outline also proposes lifting the eligibility age of medical services for the elderly to 75 from 70 until a completely new framework is devised.

Elsewhere, the outline stresses the need to protect the elderly from crime, risks associated with dementia and other illnesses, and human rights violations such as abuse by care workers.

It also urges the government to help the elderly protect their assets against fraud.

The elderly, defined as those 65 or older, form 17.9 percent of Japan's population, according to an estimate by the Public Management, Home Affairs, Posts and Telecommunications Ministry announced in September. This is the highest proportion among major industrial countries, topping 17.7 percent for Italy and 17.3 percent for Sweden.

As of Sept. 15, there were an estimated 22.72 million elderly people in Japan, up 820,000 from a year earlier. The number is projected to rise to 31.88 million by 2015.