This study evaluates old-age financial preparedness by incorporating incomes from not only public pension benefits but also other sources in Japan and examines whether these post-retirement incomes are adequate to maintain pre-retirement throughout the expected retirement life. We use large-scale data obtained from the Comprehensive Survey of Living Conditions, conducted by the Ministry of Health, Labor and Welfare. We find that four-fifths of individuals aged 60–64 have adequate income resources, while the remaining one-fifth fall short and are required to keep working even after reaching the statutory retirement age. Our results also highlight the diversity in financial preparedness reflecting differences in educational attainment and marital status—a finding that is relevant to the targets of public pension and other policies.
Oshio et al. (Thu,) studied this question.