Alternative Pension Reform Strategies for Japan
Imperial College Business School Working Paper
65 Pages Posted: 21 Nov 2005 Last revised: 22 Jun 2020
Date Written: February 1, 2002
This report summarises the research we have undertaken into the implications of various pension reform strategies in Japan. Reform is essential because ageing will generate extreme pressures on the public, unfunded pension system. We consider the macroeconomic, or aggregate, and the distributional implications of reforms that, to varying degrees, would increase reliance upon funded pensions. We also estimate the welfare implications of reforms by calculating the expected gains and losses to households of various generations. We take as a point of reference a scenario where unfunded pensions provide an income to the retired worth a high proportion of salaries at the end of their working life; we take that proportion to be 50% of gross (or around 70% of net) salaries.
Keywords: Aging population, pension reform, Japan
JEL Classification: D91, H55
Suggested Citation: Suggested Citation