Pension & Retirement Issues in Japan

（This is the famous Mitsuo Aida poem about WAY (life)

You build your own WAY

You develop your own WAY

It is not your own WAY given by others

  by Mitsuo Aida with my poor translation.)

In Japan, the pension issue has become so serious problem since the government does not have enough money to support retired senior people due to change of the population age structure.  Then, the Japanese government has requested the Japanese companies to choose one of the options in below.

1. Change the retirement age from 60 to 65
2. Re-hire an employee at 60 but it will be an annual contract to renew
3. Remove the mandatory retirement rule

In the past 60 years or so after WW II, the Japanese employment system has been the lifetime employment and I do not see the possibility for #3 option right away.  It requires to change their salary and evaluation systems.

If I were the management, I would take option 2).  If it is possible for a company for #1 option, they should extend the retirement age ASAP but it will be a big financial burden for a company and it will discourage to hire a young generation.


They get used to stay and work for one company through their lives and it is a challenge and fear to change a job.  After I graduated from school, I challenged my jobs in each decade at 20s, 30s, 40s and 50s. In that sense, I am not a stereo type of Japanese but I did not wish to change but its chance came to me.

When we make such a big decision, we may be better to follow your own intuitions.  You cannot find an answer with black and white analysis and you should believe yourself.

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