Japan has been trying to come up with ways to battle the economic effects of its ageing population with proposals such as increasing the age for retirement to 70 years old in the country. The government has seriously been mulling this and gauging public reaction should it be implemented. In a recent poll conducted on employees, aged 35 to 64, half of the respondents have expressed their desire to continue working even after the age of 65.
The survey was conducted on both male and female workers and the report published on the 2014 Annual Report on the Aging Society. Those willing to work past the age of 65 were 50.4 percent of the total respondents. Others who answered until age 70 were at 20.9 percent, until age 75 at 3.7 percent while those who said that they are willing until they are able to do so were 25.7 percent of the total. But the reasons the respondents cited as their motivation for working were not that complicated. A huge 76.7 percent of those who answered the survey want to continue working because they “wish to cover living expenses.” The second highest reason is “to earn money that I can spend freely,” which garnered 4.17 percent. The answers showed that many still continue to worry about the rising expenses and have very limited funds to enjoy things for themselves. However, when asked what type of employment they prefer, more than half of the respondents chose a part-time job.
What was worrying with the answers is the respondents’ capability to finance themselves during their retirement. 50.4 percent described their economic preparation for their twilight years as “significantly insufficient” and 16.5 said they are “slightly insufficient.” A small 23.3 percent acknowledged that they are “prepared” for their retirement. 82.8 percent said their income source during retirement would be from “public pensions,” showing the possible financial burden Japan may continue to shoulder should the issue of the ageing population continue to be unaddressed. 46.2 percent said they would take it from their own savings or retirement fund while another 45.6 would rely on “salary income.” The results of the survey would be reported to the Cabinet in one of its meetings next month.
Comments Off on JDP Startup Corner: Pros & Cons of Working with a Partner in Japan