Home   >   News   >   A new proposal may prolong payment of pension fund contribution

A new proposal may prolong payment of pension fund contribution

By on October 25, 2023

Under Japan’s universal basic pension program known as the “kokumin nenkin”, participants are required to put in premiums starting from age 20 until 59.

But a government panel Tuesday has started discussing ways and means to address an expected fall in public pension benefits as the number of working population in Japan continues to decline.

A proposal to extend these Kokumin Nenkin premium contributions by 5 more years came up. This means the maturity date by which a pensioner completes his premium obligations shifts from age 59 to a day before turning 65.

The proposal calls for extending the regular contribution period for the “kokumin nenkin” universal basic pension program for five years to 45 years.

Under the current public pension system, premiums paid by the working age population used for paying benefits are seen to decrease as the working age population continues to shrink.

If the contribution period is extended, benefits would increase from the currently projected levels and premium payments would expand.

About TF Tribe

Leave a Reply

Your email address will not be published. Required fields are marked *