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The restructuring of the corporate pension system

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Chapter Summary

According to the 2004 Public Pension Reform Act, the replacement rate of public pensions in comparison to the net income of a typical employee household will be reduced to 50.2 per cent in 2050 from 59 per cent in 2004. This chapter presents some general information on the situation of corporate pension in Japan and discusses the potential of these types of pensions for old-age income security in the future. It gives a short overview of the history of corporate pensions in Japan and discusses the contents and significance of the newly introduced corporate pension schemes in recent years. The chapter highlights current problems and possible future developments of corporate pension insurance in this country.

Keywords: Japanese corporate pension plans; old-age income



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