TOKYO, June 3 (Xinhua) -- Japan's current public pension system is not adequate to support people's livelihoods anymore facing the rapid aging problem, a Japanese government report revealed Monday.
According to the estimation by a council at Japan's Financial Services Agency, a couple who will live until 95 years old will need at least 20 million yen (184,700 U.S. dollars) after retirement, which exceeds the amount their pension benefits can cover.
The report also said that in an example of a couple with the husband aged 65 or older and the wife aged 60 or older, a monthly debt of 50,000 yen (462 dollars) will be accumulated if they only depend on their pensions.
If the couple would live for 20 years more, they would be short by 13 million yen (120,000 dollars), and if they lived for 30 years more, the amount would be 20 million yen (184,700 dollars), according to the report.
The agency appealed to the public to manage their finances and plan for their retirement beforehand by proactively managing and investing their assets.
However, the new call means that the public will be shouldering more risk compared to the past when planning their financial future.
The report also pointed out that retirement money, another major pillar of individual savings in Japan, will possibly decrease over time.
According to the report, retirement money in recent years for those with college degrees averaged around 20 million yen (184,700 dollars), which has decreased by 30-40 percent from its peak.
