Uproar over $185,000 shortfall puts Japan pension reform on hold
A public uproar has forced the government to retract a controversial report claiming that retired couples reliant on public pensions also need sizable savings, but this backpedaling could further delay Japan’s much needed reckoning with the overburdened program.
The report compiled by a Financial Services Agency council earlier this month showed that a household with a 65-year-old husband and a 60-year-old wife would need an additional 20 million yen ($184,000) in assets if they live another 30 years.
The FSA’s aim was to encourage people to start building nest eggs early, but a political storm ensued, with opposition lawmakers railing against the government for “failing the people.”
Under pressure, Finance Minister Taro Aso opted for the unusual move of rejecting the report Tuesday, saying it had caused “uncertainty and misunderstanding.” Read more @Assia Nikkei
FSA’s aim was to encourage people to start building nest eggs early, but a political storm ensued, with opposition lawmakers railing against the government for “failing the people.”
Under pressure, Finance Minister Taro Aso opted for the unusual move of rejecting the report Tuesday, saying it had caused “uncertainty and misunderstanding.”
Read more @Assia Nikkei
