The Japanese government is in massive denial about its pension crisis. From Simon Black at sovereignman.com:
It was only a few days ago that the Japanese government’s Financial Services Agency published its oddly-titled “Annual Report on Ageing Society”.
(Like everything in Japan, English translations often hilariously miss the mark…)
This is a report that the Ministry of Finance puts out every year. And as the name implies, the report discusses the state of Japan’s pension fund, and its future prospects for taking care of its senior citizens.
Bear in mind that Japan has the oldest population in the world; Japan ranks #2 in the world for average age (46.9, just behind Monaco), #1 in the world for the greatest percentage of citizens over the age of 70, and #1 in the world for life expectancy.
In a nutshell, this means that Planet Japan has more people collecting pension benefits, for more years, than anywhere else.
Yet at the same time, Japan’s pension fund is completely insolvent. There simply aren’t enough people paying into the system to make good on the promises that have been made.
At present there are only 2 workers paying into the pension program for every 1 retiree receiving benefits in Japan.
The math simply doesn’t add up, and it’s only getting worse. Planet Japan’s birth rate is infamously low, and the population here is actually DECLINING.