The share of public pension benefits in the disposable income of Japan’s working generations is expected to decline to 50.4% in fiscal year 2057 from 61.2% in fiscal year 2024, under a scenario that assumes the country’s economic growth remains at 0.1% in the medium to long term, the Welfare Ministry said on Wednesday.
The ministry presented the estimate in a report on fiscal evaluations of pension benefits, which is carried out every five years and submitted to a subcommittee of the Social Security Council, which advises the Minister of Welfare.
The figure for fiscal year 2057 is above the legally required level of 50%. But the benefit rate could fall even further, as the ministry’s calculations are based on assumptions that the economy will maintain a certain level of growth and that the population will remain largely the same.
