The Implications of Japan's Public and Corporate Pension System. A new Strategy ..

Social protection is designed to ensure a basic standard of living for all people, regardless of the means available to them. In a democratic state, social protection is a fundamental state policy, because by its implementation is done to prevent, reduce or remove the consequences of events which are considered "social risks" of living standards of people. Social security is clearly one of the major aspects of social policy now and also a constant preoccupation of modern states. From hesitant beginnings of the few countries in the first decades of the nineteenth century, social security has rapidly become one of the important factors in the lives of billions of people around the world. Japan's public pension system is operated based on the concept that the active worker generation supports the elderly generation. The Japanese population is rapidly aging, meaning that a drastic increase in contribution payments and a drop in pension benefits would be inevitable. As a result of the reform in 2004, a new financial system was adopted so that a period of approximately 100 years should be taken into account and the amount of reserves in the final year of this period should be allocated to benefits for one year (the limited equilibrium system). In accordance with discussions on steps such as consolidation of public pension plans, there is a need for consideration of the ideal form of corporate pension plans, which have been designed assuming current public pension plans.