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HOME  > Past issues  > 2020 April 22 - May 12  > JCP Miyamoto: To delay start date of pension until 75 years of age can be disadvantageous contrary to gov’t explanation
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2020 April 22 - May 12 [SOCIAL ISSUES]

JCP Miyamoto: To delay start date of pension until 75 years of age can be disadvantageous contrary to gov’t explanation

April 25, 2020
The government is intending to enable elderly people to choose to start receiving public pension benefits after turning 75 instead of the default age of 65 in exchange for an increased benefit amount. The Japanese Communist Party recently revealed that those who take this option will obtain a smaller lifetime total unless they live a few years longer than the average.

JCP member of the House of Representatives Miyamoto Toru on April 24 at a House Welfare Committee meeting criticized the government for making a misleading explanation about the planned new option with the aim of encouraging the general public to delay receiving pensions.

On the day, the committee was discussing a pension reform bill designed to include an option to postpone receiving public pension benefits. The later retirees start receiving benefits, the larger their benefits become. If they claim pension benefits at the age of 75 instead of the default age of 65, the monthly amount of their benefits will be increased 84%.

At the meeting, Miyamoto cited the government explanation that regardless of whether elderly people choose 65 or 75, the amount of pension receivable will be the same if they live to 87 years of age, Japan’s average life expectancy. Miyamoto pointed out that this explanation does not take into account the fact that those who receive the higher pension benefits will have to pay more taxes and social security premiums.

The Welfare Ministry Pension Bureau chief admitted that after the increases in taxes and social security premiums are considered, those who choose the government-proposed 75-year-old option need to live to 90, not 87, in order to receive the same amount as what they could have received if claiming the start of payments at the age of 65.

Miyamoto noted that the Japan Pension Service in its pamphlet overly stresses the fact that recipients can receive higher pension benefits if choosing the delayed pension option. He said that the pamphlet should include more explanation about increases in tax payments and social security premiums associated with delayed pension benefits.
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