Research On Sustainability Of Japanese Public Pension System

It is Japanese public pension system that plays a significant role in guaranteeing the national living standard as well as social stability.“National pension” is aimed to socialize individual pension and ensure the basic living standard of the elderly through income redistribution.However,social problems such as low birth rate and aging population are becoming increasingly serious.Under the cash payment system,the gap between the income and expenditure of the Japanese public pension is increasing,which leads to crucial burden of national treasury.In addition,it is raised a high doubt about public pension under the intergenerational inequality of public pension system,afterwards,the phenomenon of arrears and refusal to pay insurance is increasingly grievous,which have seriously affected the sustainable development of the Japanese public pension system.As the "safety net" of national life and the "stabilizer" of economic and social development,whether the public pension system can achieve sustainable development is not only related to the basic pension problem for every national,but also involved with the long-term stability and development of the whole economy and society,which is also as the significance of the research selection.The research is on the core content of the sustainability of the Japanese public pension system.Firstly,it elaborated the relevant theories of the sustainability of the public pension system,such as welfare economics theory,intergenerational equity theory,life cycle theory and intergenerational overlapping theory,which were also discussed in combination with the actual situation in Japan.Secondly,it combed the course of the reform of the Japanese public pension system to achieve sustainability as well as analyzed the effects.Thirdly,the fourth chapter analyzed the challenges of the sustainable development of the Japanese public pension system through the research of aging with less birthrate and intergenerational inequity which cause public pension financial burden.Forth,the fifth chapter is the empirical part,including two aspects.On the one hand,using life cycle theory,it is argued that bringing insurance into youth and old age in personal life can reduce the inequity of intergenerational burden transfer in the cash payment system.;On the other hand,used AR prediction model of public pension revenue and expenditure,which proves that the key to ensure the sustainability of the public pension system is to raise the consumption tax as financial source,consider the proportion of the treasury burden and transform the fund accumulation system..There are two points in the innovation of this research,the one is the calculation of the benefit and burden of the public pension system,which shows that the benefit of the elderly is 1 million 814 thousand yen in the intergenerational,and the welfare loss for young people is 268 thousand yen,the high income class benefited 269 thousand yen,and the welfare loss of the low-income class is 173 thousand yen.It showed that there is the phenomenon of unfair benefit and burden appearing in the intergenerationl people.The other one is the AR model prediction of of public pension revenue and expenditure.The results displays that between 2018 and 2050,the gap between the public pension premium income and payment will increase from 2266 billion yen to 2637 billion yen,which concludes that increasing the consumption tax as financial source,considering the proportion of the treasury burden and transforming the fund accumulation system are the keys to maintain the sustainability of the public pension system.