The Minister of Health, Labour and Welfare announces his plan to make the 65-year-old retirement system a legal requirement

In a lecture given in Sendai City in October, Minister of Health, Labour and Welfare Chikara Sakaguchi announced his plan to raise the mandatory retirement age of corporate employees to 65, in principle, in conjunction with the phased raising to 65 of the age at which pension payments begin. Under the existing law, companies are "obligated" to continue employing their workers until the age of 60, while companies are "obligated to make efforts" to continue employing their workers until the age of 65.

The Minister intends to submit the bill to next year's ordinary session of the Diet. It is almost certain, however, that companies and the business community, which are anxious to discharge middle-aged and older workers, will object to the plan.

With the labor force population predicted to decrease in the coming years, the employing of elderly workers is important to maintain economic vitality. On the other hand, young people should not be robbed of employment opportunities. Coordinating different views and needs is therefore expected to be a challenge.

Of the companies that already have a uniform mandatory retirement system in place, 89.2% have established a mandatory retirement age of 60 and 42.5% have a system of re-employment after official retirement, but only 14.3% have a system for lengthening the employment period.