How much can one receive as pension money?
If you have participated in the National Pension Plan for more than 25 years, you will recieve 67,017 yen per month as "basic old-age pension" (the 1999 revision).
With the Welfare annuity Plan, an average male with more than 40 years of membership will get 238,150 yen per month, as "old-age pension."
The Mutual Benefit Annuity encompasses different plans depending on what mutual benefit association one belongs to, such as for national or local public servants, but recipients are likely to get 10 to 20% more than the monthly amount provided by the Welfare Annuity Plan.
However, the pension system is now facing a crises.
With fewer children and an aging population. under the current system, the younger generations will need to pay more and more into the system, while the value of their own pension drops.
Another factor is that 60% of the 20-year olds are not making payments, resulting in poor funding of the pension system.
In June 2004, the ruling party forced through a reform bill to keep the pension system from collapsing.
Under the bill, contributions to the system will be raised to 18.3% (compared to 12.4% in the US, 21.9% in the UK, 19.1% in Germany, and 17.21% 1n Sweden), and the pension benefit has been set at at least 50% of average salaries of workers.The premiums for the basic National Pension program will be raised to 16,900 yen.
However, the problem of how to fully fund the pension plan remains unsolved.