Provisional Translation

Q.

In the Report on asset building and its management in the aging society discussed at the working group of the Financial System Council under the Financial Services Agency, it is stated that 20 million yen will be necessary in old age. The opposition party has criticized this, saying that it suggests the breakdown of the public pension system. What is your view on that?

A.

I believe that the public pension system which is a major component of life planning in old age is a sustainable system. Therefore, the whole government, particularly the Ministry of Health, Labour and Welfare, is making efforts for managing the public pension system appropriately. Based on that, the FSA is suggesting that people had better conduct asset building with such as ‘Dollar-Cost Averaging NISA’ in accordance with their individual circumstances in order to live an affluent life in old age. Therefore, we are encouraging a switch from saving to investing in various ways. I think that it is described in the report to that effect. In the report of the working group, the monthly average of income and expenses for elderly households are explained, and the balance amount is 50 thousand yen short a month. At age 65, if we assume a life span until age 95, they will lack for 18 million yen to live up to 95 years. Although we calculate the figure under certain assumption, I think that it is not appropriate to express that they generally lack for the amount without taking into account their various situations. As there are many people to whom that does not apply, the statement may be written in an expression that the intended meaning can be entirely mistaken. I believe that is inappropriate.