Society Japan’s ‘employment ice age’ generation faces poverty risk in retirement

Japan's so-called "employment ice age generation" (就職氷河期, Shūshoku Hyōgaki), now in their forties to fifties, is facing a growing risk of falling into poverty in old age, even if they receive the full amount of basic pension benefits. This risk stems from the relatively low wages many in this generation have earned during their working lives, combined with ongoing pension system revisions prompted by the country's ageing population and low birth rate. Many of this group may be forced to rely on welfare assistance in retirement. Experts have pointed out the need to raise pension benefit levels and to offer housing support for this generation to avoid widespread hardship.

The term " ice age generation" applies to roughly 17 million individuals who began looking for work between 1993 and 2004, during economic stagnation following Japan's bubble burst in the early 1990s. Many of them were only able to secure low-paying, irregular jobs. As a result, they often have limited enrolment in the kōsei nenkin pension system, which provides supplementary benefits beyond the kokumin nenkin, Japan's basic pension scheme with universal coverage.

The basic pension is paid in full if participants pay premiums for 40 years. The regular full amount in fiscal 2025 is set at ¥69,308 ($484) per month. However, many people in the ice age generation have periods in which they did not pay premiums or were exempted from paying due to a lack of income. The benefits they will receive will, therefore, be less than the full amount, likely leaving many struggling to make ends meet after retirement. This is feared to result in a sharp increase in welfare benefit recipients, placing a massive strain on public finances. The total monthly amount of welfare benefits, including rent aid, is ¥130,580 for people between 65 and 74 living in Tokyo's 23 wards. Welfare benefit recipients are also entirely exempted from paying out-of-pocket costs for medical and elderly care services.

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This is very serious. I don't think many people realise just how much they need as an income when they retire; it's more than you think!