Japanese pensions: The government messes up again
Well the Japanese government have done it once again. They are stating now that 10m of the 50m pension record information that was never recorded may now never be traced back to their original owners. This was one of the election pledges of the ruling coalition and now they are coming under increasing fire from opposition parties and members of the public for going back on their promises. Shinzo Abe said repeatedly that the pensions issue would be resolved, “until the last person is identified”. The government has responded by stating that they didn’t know how big the problem was when they made these promises. Not the best excuse really, is it? Calls are getting much louder for Health, Labour and Welfare Minister, Yoichi Masuzoe, to resign.
It looks like this is going to leave a huge black hole in an economy already suffering slowdown. Reports are that a new SIA will come into action in 2009, with plans to divert a larger amount of government income into pensions and social security. Possibly the entire consumption tax will be used for this, and prefectural taxes are also expected to rise to cover the shortfall. 150bn yen has been paid in by foreigners, and that is money which cannot be reclaimed by them, and they also expect in the future that $1bn will be paid annually by foreigners which will help to cover the shortfall, but this really does seem like a drop in the ocean.
As the society ages in Japan and increasing pressure is placed on the government for social security and pensions at the end of peoples’ working lives, things are not looking too bright for the future of Japan.
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