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2016 June 8 - 14 [SOCIAL ISSUES]

Deficits in elderly household budget increase by 80% in decade

June 11, 2016
The deficit in budgets for older person households increased by 80% in 10 years. This was revealed by recent government data.

The Internal Affairs Ministry in May released the results of the 2015 family income and expenditure survey. In the survey, no-occupation households with an aged couple had a monthly deficit of 62,326 yen, up 26,871 yen from that of 35,455 yen in 2005.

These aged families are relying on pension benefits for 90% of their income. The Liberal Democratic and Komei-government since 2001 has implemented cuts in pension benefits. As a result, between 2005 and 2015, the average monthly amount of pensions for aged couples decreased by 18,308 yen from 212,394 yen to 194,086 yen.

During the same period, the amount of non-consumption expenditures, such as taxes and social insurance premiums, increased by 5,424 yen to 31,842 yen a month. This financial burden was produced through various government measures, such as an increase in nursing-care insurance premiums.

In order to cover various costs, including food, utilities, and housing, aged couple families every month spent 243,864 yen, up 4,448 yen from 2005. It is obvious that the high consumption tax rate and increase in utility bills contributed to this.

Meanwhile, the survey results released by the Welfare Ministry on June 1 showed that among welfare recipient households, households headed by people aged 65 and over exceeded 50% for the first time. The ministry’s 2013 survey on people’s living conditions indicated that 16.8% of elderly households had no savings.

More and more elderly people have fallen into poverty due to cuts in pension benefits and social welfare programs by the government led by the Liberal Democratic and Komei coalition.

Past related articles:
> Abe hints at cutting pension benefits due to stock market downturn [February 10 & 16, 2016]
> Cuts in pension benefits are unconstitutional: pensioners [May 30, 2015]
> Abe outlines further cuts in welfare budget next year [August 13, 2014]
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