Chief Cabinet Secretary Yoshihide Suga said Wednesday that the government will consider overhauling the public pension system to make sure it is sustainable in the long term, a day after the government projections showed that pension payouts would fall by nearly a fifth in real terms by 2047.
The labor ministry on Tuesday released its long-term projections on the public pension system, estimating the payout level for a "model" household will fall nearly 20 percent in real terms after about 30 years in a standard scenario assuming economic growth and employment.
In its pension estimates — which are issued every five years to gauge the health of public pensions — the government estimates monthly pension benefits at ¥220,000 per model married couple, worth about 61.7 percent of pre-retirement income. That consists of the couple's basic pension of ¥130,000 and ¥90,000 from the employee's pension insurance that the husband receives after he retires.