More than half of Japanese companies are planning to raise the retirement age of their workforce, a Reuters poll shows, with many saying it would alleviate the labor shortage and harness the expertise of veteran workers.
In the country, most companies require full-time employees to retire at 60, with an option of an additional five years' work on reduced pay and adjusted terms. The system is a keystone of the traditional jobs-for-life employment structure where workers are virtually guaranteed employment from graduation to retirement.
However, a shrinking and aging population is forcing change. The government intends to raise the pensionable retirement age to 65 by 2025 to keep more people in the workforce and reduce pressure on a shriveling tax base and rising social welfare bill.