This month's featured article
Institutional Mechanisms Designed to Promote Elderly Employment and the Improvement of Pension Literacy
IKARI HiroshiSenior Fellow, RIETI
A society where all of Japan's 100 million citizens play full and active roles is what Prime Minister Shinzo Abe advocates for in the second stage of his Abenomics economic policy. Indeed, since his return to the leadership in December 2012, the labor force participation rate for elderly people aged 65 years and older has been steadily on the rise to reach 22.2% today, more than three percentage points higher than the level before Abenomics. As such, we are now entering the era in which one out of every four in the pensioner generation will be working.
Elderly Japanese people are highly rated as human resources. In the World Economic Forum (WEF)'s latest Human Capital Report, Japan topped the list in the 65 and over age group (Japan ranked fifth in the overall human capital index covering all age groups). At the same time, however, the report also states that, just as a general observation, the presence of many elderly people in the labor market reflects the absence of a mature pension and welfare system. Building on the above observations, this article will examine the relationship between elderly employment and old-age pensions in terms of regulatory and institutional systems.
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