IDEAS home Printed from
   My bibliography  Save this paper

Japan's pension reform


  • Sakamoto, Junichi


Rapid population ageing has led to repeated adjustments to the parameters of Japan's public pension scheme over the last decade, all aimed at achieving long run financial balance. The most recent attempt, describe in this paper, introduces an adjustment mechanism that links future benefit levels to the underlying determinants of the scheme's finances. This mechanism is similar to those recently introduced in Germany and, to a lesser extent, in Sweden, and fundamentally alters the concept of the'defined benefit'. Changes to how pension reserves are invested are also described. Finally, the benefit reductions in the public scheme and recent regulatory changes suggest an increased future role for complementary private provision.

Suggested Citation

  • Sakamoto, Junichi, 2006. "Japan's pension reform," Social Protection and Labor Policy and Technical Notes 36175, The World Bank.
  • Handle: RePEc:wbk:hdnspu:36175

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Dercon, Stefan, 2004. "Growth and shocks: evidence from rural Ethiopia," Journal of Development Economics, Elsevier, pages 309-329.
    2. Holzmann, Robert, 2001. "Risk and vulnerability : the forward looking role of social protection in a globalizing world," Social Protection and Labor Policy and Technical Notes 23161, The World Bank.
    3. Vakis, Renos & Kruger, Diana & Mason, Andrew D., 2004. "Shocks and coffee : lessons from Nicaragua," Social Protection and Labor Policy and Technical Notes 30164, The World Bank.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:hdnspu:36175. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Raiden C. Dillard). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.