Japan Press Weekly

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2017 May 24 - 30 [SOCIAL ISSUES]

30% of elderly people in FY2035 will be in poverty

Nearly 30% of elderly persons in Japan will fall into poverty by 18 years from now, according to estimates recently released by the major private think tank Japan Research Institute, Ltd (JRI).

JRI predicts an increase in the number of elderly households (65 years old or over) whose income and savings are below the level needed to a minimum standard of living. The survey report shows that the number of such families will increase to 5.62 million in fiscal 2035.

JRI in the report analyzes that many of those born between the 1950s and early 1960s have experienced hardships associated with corporate restructuring and pay cuts since the 1990s, and that these people cannot sufficiently accumulate funds, such as pensions and savings, for their post-retirement years.

The report points out that the recent high ratio of non-regular employees is causing the ongoing rise in the number of the “working-poor”.

As a result of such people reaching old age, the number of elderly persons without pension benefits or with very low pensions, or without savings or with very low savings, will increase in the future.