Saturday, 13 January 2018

年金: Pension Tension

Japan's recently experienced positive inflation again, but negative real wage growth.
Company (厚生/Kōsei) pension funds have responded by decoupling benefits from the former, and linking them to the latter (from 2021), while simultaneously increasing premiums.

For those who need first hand evidence that this can happen in a developed country, dear spouse and colleagues were herded into an auditorium two days ago and told their pension would be slashed.
On the one hand, this seems a laudable effort to spread the burden across depositors and beneficiaries, between young and old.
On the other, I guess the swelling ranks of cashed-up elderly consumers can't be counted upon to revive the domestic economy, especially as the trend towards part-time work makes real wage growth less likely.

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