Some inconvenient truths which were highlighted in Pension Report has created a storm in the Japanese politics and Prime Minister Shinzo Abe is seems to be in serious trouble. The report warned that many retirees will not be able to live on pensions alone, a topic likely to become an issue in an election for parliament’s upper house. Abe is reportedly trying to suppress the speculation that he may dissolve the Lower House to coincide with July’s per-scheduled Upper House poll in a political gamble often dubbed a “double election.”
The pension issue has gathered attention since Finance Minister Taro Aso earlier this month refused to accept a report compiled by a Financial Services Agency panel. The panel estimated in the report that a retired couple would face a shortfall of 20 million yen ($184,000) if they live to be 95 years old under Japan’s public pension system. The report was intended to encourage Japanese people to better prepare for their post-retirement through proper management of financial assets beforehand, according to the panel.
The Abe administration is seeking to enhance social security for all generations, creating a society that supports people living to 100 years. During Abe’s previous short stint as prime minister, his Liberal Democratic Party suffered a defeat in the upper house election in 2007 due in part to the mishandling of pension records.
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19 July, 2019