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The public pension system and the ageing society

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Chapter Summary

This chapter provides an overview of current issues regarding public pension programmes and their reforms under population ageing in Japan. It summarises basic institutional backgrounds, presents policy projections under population ageing, and addresses issues that remain unresolved-all of which are expected to help understand how the Japanese pension system is responding to population ageing. The chapter presents a brief overview of the institutional features of Japan's public pension system and discusses the basic features of the 2004 pension reform. It assesses the post-reform pension system from a balance sheet viewpoint and discusses future reform options. The chapter discusses related issues regarding the public pension system-that is, the impact of pension benefits on the incentives to work for the elderly and on intra-generational income distribution.

Keywords: income distribution; Japan's public pension system; population ageing



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