In the next few decades, Japan's ratio of workers to retired people will change dramatically.
In 1990, there were almost six people of working age for each retired person. By 2025, that number will be almost down to two. That means there will be fewer people paying tax and more people supported by the state. Government income will fall, while pension and health care costs will rise. One way of paying for these is to raise taxes and this has happened to a limited extent but it has not been popular at all. Another option is to try to persuade people to work for longer, delaying pension payouts and using older workers to boost the labour force.
The government is gradually raising the age at which pensions are paid - by 2030, everyone will have to wait until 65. Read the last in the BBCs articles here.
In 1990, there were almost six people of working age for each retired person. By 2025, that number will be almost down to two. That means there will be fewer people paying tax and more people supported by the state. Government income will fall, while pension and health care costs will rise. One way of paying for these is to raise taxes and this has happened to a limited extent but it has not been popular at all. Another option is to try to persuade people to work for longer, delaying pension payouts and using older workers to boost the labour force.
The government is gradually raising the age at which pensions are paid - by 2030, everyone will have to wait until 65. Read the last in the BBCs articles here.
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