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The effect of pension reform on pension-benefit expectations and savings decisions in Japan

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  • Tsunao Okumura
  • Emiko Usui

Abstract

Using the Japanese Study of Aging and Retirement (JSTAR), which is a new Japanese panel survey of people aged 50 and over, we find that more Japanese in their early 50s expect their level of public pension benefits to decline compared with those in their late 50s and early 60s. We also find that recent pension reforms that raised the pensionable age affected the Japanese population by increasing the age at which they expect to claim their benefits by almost the exact same amount as the increase in the pensionable age. The reforms have also decreased the population's expectations about receiving public pension benefits, although this effect is not necessarily significant. We also find evidence that anxiety about the public pension programme's future increases private savings.

Suggested Citation

  • Tsunao Okumura & Emiko Usui, 2014. "The effect of pension reform on pension-benefit expectations and savings decisions in Japan," Applied Economics, Taylor & Francis Journals, vol. 46(14), pages 1677-1691, May.
  • Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1677-1691 DOI: 10.1080/00036846.2013.870654
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    References listed on IDEAS

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    1. Takashi Oshio & Satoshi Shimizutani & Akiko Sato Oishi, 2010. "Does Social Security Induce Withdrawal of the Old from the Labor Force and Create Jobs for the Young? The Case of Japan," NBER Chapters,in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 217-241 National Bureau of Economic Research, Inc.
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    5. ICHIMURA Hidehiko & SHIMIZUTANI Satoshi & HASHIMOTO Hideki, 2009. "JSTAR First Results 2009 Report," Discussion papers 09047, Research Institute of Economy, Trade and Industry (RIETI).
    6. Takashi Oshio & Akiko Sato Oishi & Satoshi Shimizutani, 2011. "Social Security Reforms And Labour Force Participation Of The Elderly In Japan," The Japanese Economic Review, Japanese Economic Association, vol. 62(2), pages 248-271, June.
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    Cited by:

    1. Marco Bertoni & Giorgio Brunello, 2014. "Pappa Ante Portas: The Retired Husband Syndrome in Japan," "Marco Fanno" Working Papers 0182, Dipartimento di Scienze Economiche "Marco Fanno".
    2. Emiko Usui & Satoshi Shimizutani & Takashi Oshio, 2016. "Are Japanese Men of Pensionable Age Underemployed or Overemployed?," The Japanese Economic Review, Japanese Economic Association, vol. 67(2), pages 150-168, June.
    3. repec:eee:hapoch:v1_951 is not listed on IDEAS
    4. Bertoni, Marco & Brunello, Giorgio, 2017. "Pappa Ante Portas: The effect of the husband's retirement on the wife's mental health in Japan," Social Science & Medicine, Elsevier, vol. 175(C), pages 135-142.

    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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