{
  "title": "Pension Reforms in Japan",
  "publication": "IMF Working Papers, December 4, 2012",
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  "summary": "This paper analyzes various reform options for Japan’s public pension in light of large fiscal consolidation needs of the country. The most attractive option is to increase the pension eligibility age in line with high and rising life expectancy.",
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    {
      "heading": "Key findings",
      "content": "- The paper analyzes various reform options for Japan’s public pension in light of large fiscal consolidation needs.\n- The most attractive option identified is to increase the pension eligibility age in line with high and rising life expectancy.\n- Increasing eligibility age would have a positive effect on long-run economic growth and would be relatively fair in sharing the burden of fiscal adjustment between younger and older generations.\n- Other attractive reforms include:\n  - Better targeting by “clawing back” a small portion of pension benefits from wealthy retirees.\n  - Reducing preferential tax treatment of pension benefit incomes.\n  - Collecting contributions from dependent spouses of employees, who are currently eligible for pension benefits even though they make no contributions.\n- These options, if implemented concurrently, could reduce the government annual subsidy and the government deficit by up to 1¼ percent of GDP by 2020."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Increase pension eligibility age in line with life expectancy trends to support growth and intergenerational fairness.\n- Implement targeted benefit reductions for high-income retirees via clawbacks.\n- Phase out or reduce preferential tax treatment on pension benefit incomes.\n- Require pension contributions from dependent spouses of employees who currently receive benefits without contributing.\n- Consider implementing the above measures concurrently to maximize fiscal impact."
    },
    {
      "heading": "Implications and projections",
      "content": "- Concurrent implementation of the recommended measures could reduce the government annual subsidy and the government deficit by up to 1¼ percent of GDP by 2020.\n- Raising eligibility age is emphasized for both fiscal consolidation and positive long-run economic growth outcomes.\n\nExcerpted from IMF Working Paper \"Pension Reforms in Japan\" (December 4, 2012).\n\n---\n\n Content in this bundle\n\n- Wp12285\n  - Wp12285 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp12285 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/pension-reforms-in-japan-40141"
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    "Authors: Kenichiro Kashiwase, Masahiro Nozaki, Kiichi Tokuoka",
    "Published: December 4, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475544312.001",
    "The paper analyzes various reform options for Japan’s public pension in light of large fiscal consolidation needs.",
    "The most attractive option identified is to increase the pension eligibility age in line with high and rising life expectancy.",
    "Increasing eligibility age would have a positive effect on long-run economic growth and would be relatively fair in sharing the burden of fiscal adjustment between younger and older generations.",
    "Other attractive reforms include:",
    "These options, if implemented concurrently, could reduce the government annual subsidy and the government deficit by up to 1¼ percent of GDP by 2020.",
    "Increase pension eligibility age in line with life expectancy trends to support growth and intergenerational fairness.",
    "Implement targeted benefit reductions for high-income retirees via clawbacks.",
    "Phase out or reduce preferential tax treatment on pension benefit incomes.",
    "Require pension contributions from dependent spouses of employees who currently receive benefits without contributing.",
    "Consider implementing the above measures concurrently to maximize fiscal impact.",
    "Concurrent implementation of the recommended measures could reduce the government annual subsidy and the government deficit by up to 1¼ percent of GDP by 2020.",
    "Raising eligibility age is emphasized for both fiscal consolidation and positive long-run economic growth outcomes.",
    "**Wp12285**"
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