1. Top
  2. Policy Proposals
  3. Economic Policy, Social Security
  4. Proposal for Promotion of Social Security System Reform

Policy Proposals  Economic Policy, Social Security Proposal for Promotion of Social Security System Reform

October 15, 2013

Prime Minister Abe on October 1, 2013, announced his decision to raise the consumption tax rate to 8% in April 2014. Raising of the tax rate is intended to secure funding for social security benefits amid the rapid aging of society and low fertility. In the meantime, discussions on structural reforms that are intended to make the social security system sustainable have been rolling forward. In this autumn's session of the Diet, bills related to setting a reform schedule for up to FY 2017 are to be deliberated.

Considering these circumstances, Keidanren requests the Japanese government and ruling parties implement the following six measures in order to build a society where all generations can support each other and live without anxiety, as well as to realize a social security system reform which is sustainable and capable of coexisting with economic growth at the same time.

  1. The consumption tax rate should be raised to 10% in October 2015 as planned in order to secure a further stable funding source for social security benefits.

  2. In order to put a brake on the ballooning social security expenses caused by the aging society, people who really require support should be prioritized in receiving benefits in the field of public healthcare and nursing care services as well as in public pension programs. Their operation systems should be streamlined as well.

  3. In order to maintain and improve the vitality of the Japanese economy and society, the burden of social insurance premiums paid by working people and corporations should be restrained.

  4. Self-help efforts of citizens should be encouraged especially in the areas of health management, prevention of diseases and the need for nursing care, as well as private pensions.

  5. The government should enhance its communication networks so that people can obtain crucial information such as expected impacts of the social security system reform on their daily lives .

  6. Information technology infrastructure should be further expanded in medical care and other social security fields.

Economic Policy, Social Security