Last week, the Ministry of Health Labor and Welfare released the results of a survey of about 60,000 households regarding the government-run basic pension plan. The ministry found that about one-fourth of the people who are supposed to be paying into the plan had no income in 2009. In addition, 38 percent of participants made less than ¥500,000 for the year, and 54.7 percent made less than ¥1 million.
The basic pension, kokumin nenkin, is for people who don't work for companies or organizations that contribute to their employees' government-run pensions, meaning they are either self-employed, part-timers or unemployed (and not wives of salaried workers). In 2011 only 58.6 percent of people who were supposed to pay into the basic pension plan actually did. The obvious conclusion the ministry drew from these numbers is that the ranks of the poor are growing.
These findings are sobering, but one should keep in mind that while not paying one's pension contributions certainly undermines the system it doesn't affect the person in a direct way, since he or she does not benefit from those contribution until he or she is old. In any case, if a person can't pay the monthly ¥14,980 basic pension contribution because he or she is unemployed, the person can apply for an exemption.