Are Women Preparing for Old Age? Evidence from Japan

One of the key challenges that population aging poses is to ensure that people have an adequate level of saving for old age. The gendered aspect of old-age saving is particularly important given that women tend to contribute less than men to pension programs because of their weaker labor market attachment and lower earnings over their life cycles even though women tend to live longer than men and thus need to save more than men. Using data from the Japanese Panel Survey of Consumers, this paper assesses women's preparedness for old age by examining whether or not women are saving for old age and how much they are trying to save for that purpose outside of pension programs. It finds that, in comparison to married women, unmarried women are less likely to be saving for old age. The regression results also suggest that women in irregular employment and those with limited financial resources are less prepared for old age. These results raise serious concerns about the possible risk of old-age poverty among unmarried women, particularly those who have worked mainly as irregular workers, if at all, as they are less likely to be covered by the Employees' Pension Insurance System.