Business

In wake of uproar over pension system, Japan to draw up fresh report on post-retirement financing

JIJI

The Financial Services Agency plans to compile a fresh report on post-retirement financing after its previous report sparked a controversy with its estimate that an elderly couple living to age 95 will need ¥20 million in life savings on top of public pensions, according to informed sources.

The previous report, crafted by a working group at the Financial System Council in June, drew criticism from both ruling and opposition lawmakers for suggesting the collapse of the public pension system and causing misunderstanding and worry among the public.

As a result, financial services minister Taro Aso refused to accept the report.

Since income and expenses, as well as lifestyles, vary between individuals, it is difficult to calculate how much elderly people should save for their post-retirement lives.

According to pundits, Japan needs to deepen discussions on long-term asset management to better prepare for a society where 100-year life spans may become more common.

The agency plans to resume discussions at the working group as early as September, the sources said. It aims to have fresh talks on financial services and asset building necessary for an aging society before submitting the new report to Aso, the sources said.

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