News On Japan quoted MBS News as saying that one of the key changes is the removal of the "1.06 million yen wall", which limits the pension participation rights of part-time workers, and the use of employee pension reserves to consolidate basic pensions.
According to social insurance labor consultant Tomoyuki Tokoda, current reforms aim to address real economic and demographic changes.
He noted that government financial forecasts show that if there is no reform, pension benefits will decrease by about 20% in the next 30 years. While salaries are expected to increase modestly, pensions will not keep up, leading to a decrease in the replacement rate for retirees.
Another hotspot is the expansion of the employee pension system for part-time and short-term workers, by eliminating the requirement for income and company size.
This may help increase the number of participants, but also raise concerns about costs for small and medium-sized enterprises, as well as the possibility of workers reducing working hours to avoid deducting pensions.
The proposal to transfer part of the employee pension fund to support basic pensions is also controversial. Some salaried workers argue that this is unfair, but Tokoda emphasizes that the main impact falls on the high-income group, while average households are less affected.
The government is also considering amending regulations on pensions for working elderly people, which currently reduces allowances if total income exceeds 500,000 yen/month.
Raising or lifting this ceiling may encourage older people to continue working, but also raise concerns about financial burdens. Mr. Tokoda said that the actual impact is small because only a few retirees are affected.
However, public trust in the pension system is still fragile. Young people are increasingly skeptical about high insurance premiums and the ability to receive benefits in the future.
The "standard household" model (husband working full-time, housewife) that the government uses for forecasting is also considered outdated, as more and more people are living alone or both husband and wife working together.
Tokoda recommends that each individual should proactively learn about their pension situation through the annual pension statement or contact the local pension office.
He also noted that the latest financial review did not detect a sudden decline, but risks still exist, especially with the "job ice age" generation whose careers are precarious and may lack adequate pension insurance.
The debate on pension reform reflects broader concerns about economic inequality, demographic changes and political responsibility. Decisions in the coming time will affect not only the current retired generation but also the confidence of young workers in the future system.
