Old Age Money Concerns in Japan
I read an interesting article on Nippon.com a few days ago, and being the age that I am, it was just plain scary. Keep in mind that about a third of the people in Japan are over age 65. In a recent MetLife Insurance Company survey of 14,100 Japanese aged twenties to seventies, 83.3% said they were worried or somewhat worried about their old age due to money. After reading this article, I understand why they are worried!
The average amount that respondents to the survey thought they needed for after retirement was 28.3 million yen (about 252,000 USD). The average amount of financial assets currently held was 11.8 million yen (about 105,000 USD). Those in their 50's who would soon be reaching retirement, thought they needed 29.5 million yen (almost 262,000 USD), but currently only had 11.5 million yen (102,500 USD) in savings. I see why they are worried. This seems like a very small amount, especially for the number of retirement years people generally have in Japan. The average amount held by those who were "not worried" about money during retirement was 23.3 million yen (207,600 USD).
Even adding in the pension payment a person can get after age 65, this seems much too small an amount. People are required to pay into the Japanese pension system until age 60 (current amount is 16,610 yen per month or about 150 USD). If one pays a full 40 years, the maximum amount one can receive per year is 780,900 yen (less than 7,000 USD), or about 65,000 yen per month (about 600 USD), according to the Japanese Pension Service. No wonder people are concerned or worried.
Another part of the survey focused on concerns about nursing home care for themselves and family members. Respondents were most worried about themselves (75.8%) and their spouses (74.7%). This was followed by 48.9% concerned about their own mother, 40.9% about their spouse's mother, 37.2% for their own father, and 30.2% about their spouse's father. Most have never discussed the subject with family members.
Most also responded that they were not prepared to cover their own expenses. Does that mean they think their family members will pay, or the government will pay? Who pays for nursing home care in Japan?
I always read that Japanese people save much more money that Americans. I'd like to see a similar survey of Americans. This is very sad and very scary. I imagine the situation has become much worse since the start of the pandemic.
Note: exchange rates for yen to USD as of date written.
6 comments:
The only discussions my family had about these issues involved my mother telling me to never put her in a home. Then she fell and broke vertebrae, and ended up in a wheelchair. So then there was no choice, as she needs full time care and specialised lifting equipment etc.
Fortunately here nursing home care costs what you can afford. For people with no income the government pays the cost of the care, and people with assets have to contribute to the cost.
Until let's say 25 years ago, most households had three (or more) generations here in Japan.
The oldest son never moved out of his parents' home, when he married his wife moved in, and she became a kind of live-in maid. When children were born you had a three generation family. Grandmother did much of the babysitting jobs.
As the grandparents grew older, the son and his wife took over the job of head of household and housekeeper. So nursing care was done by the wife and financial responsibilities rested on the son.
I am sure the old generation never reflected on who would take care of them. This custom allowed them to pass the baton to the next generation and it would go on like that.
However, it is now the norm that all the children leave the nest and create their own households. Women stay in the workforce and do not become 'the one who is always at home looking after everyone'. So old and young, they all have to fend for themselves. That is why we need nursing homes and a lot of money. People use disposable diapers instead of the daughter-in-law's daily laundry service, they need paid 'meals-on-wheels' instead of the DIL's home cooking, they need wheelchair transport to day care facilities for daily baths instead of making do with DIL's blanket baths at home...
The Japanese government states that pension system is a “100-year safety system”.
work as long as you can,pay your pension, delay the pension payment start data as much as possible, live as long as possible. Being health without resorting to a hospital.
I think it is a condition that these are cleared.
Therefore, I think many people are skeptical about the pension system and are wnrried about their life in old age.😰
There is 「long-term care insurance」system in Japan. Enforced from 2000. Everyone over the age 40 joins and pays premiums. Those who are paid a pension will be deducted from pension.
This system is guaranteed by the national government（municipalities）when long-term care is required. Those who receive the service bear 10% to 30% of the cost（payment.）
（day service,long-term care service, nursing home,etc）
However, the amount of long-term care expenses paid is increasing year by year, and the content of the system is complicated.😥
Although it has improved a little, self-reporting is important in Japan. I can never say that I am kind. Recovery is quick and payment is slow.🙎
Not long ago,it become a hot topic when it was reported TV news that「20 million yen is required for old age」.
I was at lost when I heard that･･･.😨
Pamela: This is an amazing post, I have heard that the Asian people take care of the elderly or at least they used to, nowadays its a different world.
We started saving the day we got married, so many Americans feel they can live on Social Security, its a shame they think that way, two of Michaels sisters feel they can live on SS, we have tried and tried to explain that to them.
Now Mikes one sister who is 74 has to continue to work due to not enough money is coming in, her 73 year old husband is still driving long haul truck.
I am happy we saved and invested.
Catherine
Sad how life has changes in Japan, the family unit seems to have been broken up, this caring for the elderly is a new phenomenon. My Mum went into care in NZ when she could no longer manage alone, because she had a house we had to sell it so we could pay her monthly fees. Residents with no money were paid for by the Govt.
I seriously thought Japan had a better pension system in place. I know many people in Germany are worried about falling under the poverty line once they retire, but that is because you are generally expected to be able to live off the pension the government pays you here (but due to increased cost of living, some sort of private retirement fund is also recommended now).
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