July 14, 2011
In the FY 2010 ending in March 2011, the government collected 59.3% of public pension premiums, a record low. The Welfare Ministry announced this finding on July 13.
The ratio is even lower than the previous levels for five consecutive years. In addition, it is the first time that the ratio dropped below 60% since 1986 when the current public pension system was launched.
The ministry’s data show that among people in their twenties, the ratio was lower than 50%.
The Welfare Ministry pointed out that as a result of the worsening job market, more and more people have to work under unstable employment conditions and are unable to pay their monthly pension premiums (15,100 yen in FY 2010).
The number of low-income earners who are exempt from premium payments is 2.21 million, an increase of 70,000 from the previous year.
Out of 19.38 million of national pension scheme members, 8.73 million or 45% are in arrears in payment of premiums or are exempt from payments. The amount of pension for these people will be none or very small.
The ratio is even lower than the previous levels for five consecutive years. In addition, it is the first time that the ratio dropped below 60% since 1986 when the current public pension system was launched.
The ministry’s data show that among people in their twenties, the ratio was lower than 50%.
The Welfare Ministry pointed out that as a result of the worsening job market, more and more people have to work under unstable employment conditions and are unable to pay their monthly pension premiums (15,100 yen in FY 2010).
The number of low-income earners who are exempt from premium payments is 2.21 million, an increase of 70,000 from the previous year.
Out of 19.38 million of national pension scheme members, 8.73 million or 45% are in arrears in payment of premiums or are exempt from payments. The amount of pension for these people will be none or very small.
