Does Social Security of Japan Fail?

It is fresh in memory that unjust receipt of public assistance became a problem recently. Then, a theme called the breakdown of social security of Japan was often treated.

 

Source-of-Revenue Pressure of Social Security Cost

The total amount of the social security cost in 2012 is 26 trillion yen. This is equivalent to 52% of general expenditures of Japan. Furthermore, this is equal to the total revenue amount of an income tax, a corporation tax, and a consumption tax, i.e., the three major taxes. Moreover, this expense increases about 1 trillion yen respectively every year. It is used for social security cost mainly maintaining indispensable public services, such as welfare allowances, a pension, medical expenses, and care welfare expenses. And this problem is deeply concerned with a low-birthrate-and-longevity problem, an issue of increasing the consumption tax, etc.

 

 

 

The problem of public assistance

Welfare allowances are often made a victim noting that it is comparatively reducible. This is about 4 trillion yen in total, and is small compared with other expenses, such as medical expenses (30 trillion) and a pension (50 trillion). It is because the fact that this expense is still discussed for the problem of unjust receipt and really required person cannot be offering sufficient support. 25,000 affairs will become clear about unjust receipt in 2010, and it will be said that the total amount exceeds 12,800 million yen. And, 2,110,000 people's unjust receipt became clear in 2012 more. Although there is an example like this, it has not resulted, since it turns out that the police does not often charge or the gang is concerned in the back. On the other hand, the rate that welfare allowances occupy in a national budget of Japan is low. Japan is 0.3% so much in the United States (3.7%), Britain (4.1%), and Germany (2.0%). And it is also a fact that there are those who are in pain without the ability to actually lead a minimum life. Thus, both to increase about welfare allowances and to reduce are required.

 

Maintenance of a pension system

                                                         

The pension of Japan serves as the simple system that the generation's young man supports elderly people. Therefore, at the present aged society, this system consumes financial funds in the amount of money as the several times of income. A pension system is a system materialized at the time when man's life expectancy is shorter than now, and the amount of money paid is even now computed in a formula of those days. For example, when it was around 1980, one old man was supported by 7 to 8 persons. However, you have to support one old man by 3 to 4 young men now. The burden rate is formed into 2 twice compared with about 30-year before. The burden rate per young man continues to increase. Thus, the structure of the pension system itself has unreasonableness. In this situation, it is certain that the increase in raising of pension eligibility age, a substantial reduction of pension obligation fees, and the working population's pension obligation fees is someday performed. However, if this is performed, a great burden will be applied to a young man, or it will interfere with elderly people's life. So, the pension system is holding complicated dilemma now.