Waseda University Institute of Comparative Law

     The concept of social security varies with the country's political, economical and cultural background. In Japan, the term "social security" often implies and includes income security, health care and social services. Japan does not have legislation like the Social Security Act in the United States, but similar legal systems are recognized in an integrated form as a realm of law.

     The Japanese social security system grants a majority of benefits (approximately 70%) to people of the age 65 or above. Meanwhile, benefits granted to children and their parents are only about 3%. Considering the dropping birth rates in Japan with respect to the low benefits granted, the imbalance is required to correct.

     The legal systems for elderly citizens have also undergone a significant legislative revision, and the need for such revision has been discussed.

     In the realm of income security, in 2004, a framework for reduction of insurance premiums and pension benefits was introduced by revision of the public pension system. Nonetheless, discussions regarding the need for further revision are ongoing. These mainly focus on whether the basic component of the two-tier (basic and earnings-related) public pension system should be funded completely by tax instead of the current social insurance method, in which half of the pension is funded through insurance premiums. Recently, members of the ruling Liberal Democratic Party have started supporting the all-tax method, in addition to its long-time advocates (business community and labour unions).

     In the realm of medicine, a new insurance program for elderly citizens 75 years of age or above has started in 2008. Half of the funds will be covered by tax and 40% shall be from aid supported by multiple medical insurers targeting citizens less than 75 years of age. The remaining 10% shall come from the insurance premium from the elderly citizens. The major challenge is to reduce the medical expenses of the elderly, which is increasing every year despite the government's efforts.

     At the same time, in the realm of social welfare or social services, the long-term care insurance, which was implemented in 2000, primarily targeted people of the age 65 or above. Currently, there is a debate as to whether this so-called "Elderly Care Insurance" should be extended to the disabled under 65 years of age.

     These trends mainly relate to whether the elderly should be covered by a separate system or an age-reconciling system should be employed, which would influence the future direction of the social security system in Japan.