Integration of Pension, Assistance and Taxation: How to Balance Insurance Role with Redistribution Role

Hideaki Tanaka, 秀明 田中 and ヒデアキ タナカ

No 370, PIE/CIS Discussion Paper from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University

Abstract: The Pension Reform 2004 in Japan has fixed the schedule of contribution hike until 2017 and incorporated a, mechanism of maintaining the financial sustainability of pension funds to some extent. However, there still, remain a lot of problems including unequal burden-sharing, unqualified pensioners, old-age poverty and, missing of contribution records. These problems are fundamentally originated in the structure of Japanese, pension systems which are divided into several occupational groups. Firstly, this paper addresses the Japanese, pension system is "inefficient" in terms of both smoothing income (insurance role) and providing adequate, income (redistribution role), although the overall income level of Japanese elderly relative to young workers is, better than that of the OECD average. Secondly, the paper reveals this inefficiency derives from, fragmentations within pension systems, between pension and public assistance, and between pension and, taxation. Finally, the paper argues the urgency of integration of relevant provisions for ensuring old-age, income security in the context of rapid change in economic and social circumstances and discusses major issuesin proposing several alternatives for integration with reference to major OECD countries' experiences.

Keywords: universal pension; social insurance; integration; public assistance; taxation on pension (search for similar items in EconPapers)
JEL-codes: H24 H55 I38 J26 (search for similar items in EconPapers)
Pages: 85 pages
Date: 2008-04
Note: This paper was originally presented at the Tokyo Meeting for ESRI (Economic and Social Research Institute, Cabinet Office) International Collaboration Projects 2007, March 4&5 2008., April 1, 2008 -- p. 1
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