Shorter pension eligibility period goes into effect from August 1
July 27 , 2017On August 1, legislation aimed at ensuring that no Japanese citizen would go without a minimum level of pension income went into effect. Komeito was among the biggest backers of the law, which lowers the minimum period for which a beneficiary may be entitled to receive a state pension from 25 to 10 years. In doing so, some 640,000 senior citizens now without a pension can not only receive payment, but the extended coverage is projected to reduce the number of pension-less individuals in Japan.
Applicants under the new law can expect a pension cheque after the first month of registration with the Japan Pension Service.
While those registered under the national program that have paid in premiums for the full period of 40 years will be able to receive 65,000 yen per month, those under the ten-year pay-in period will be eligibel for some 16,200 yen a month.
Although people are obligated to make pension premium payments until the age of 60, there are exceptions. Those who are over the age of 60 who have not yet made pension premium payments for the minimum period of ten years will receive a notice from the Japan Pension Service before the end of this year.
The shortening of the pension payment period was scheduled to go into effect at the same time as the 10% increase in consumption tax, which was expected to start in April 2017. However, because the tax hike was delayed by two and half years, now scheduled for October 2019, Komeito advocated to make the support of low-income elderly citizens a priority before the tax hike goes into effect.