More and more people work after 70 years

The situation Demographic of Japan is forcing government and companies to adapt its regulations to maintain the balance between a very aging work mass and a serious labor shortage young man who has caused decades of stagnation in the birth rate.

One of the measures that are being applied most in companies is the expansion of the mandatory retirement age. Thus, the most veteran employees They can continue working until beyond the 70 years if they wish.

5.4 million senior employees. According to data published by Nikkei Asia, Japanese companies keep more than 5.4 million employees of 70 years or more. According to A report Of the Japanese Business Federation of 2024, the employment rate among those over 65 in Japan is 25.2%, well above 18.6% in the US, of 10.9% of the United Kingdom or 3.9% registered by France.

According to this report, 99.9% of Japanese companies had measures to guarantee the use of their workers Beyond the 65 years, after the reform in 2023 of the retirement age in Japan, which went from 60 to 65 years. However, Japanese companies have taken the legislation a little further: 29.7% of them have measures that guarantee employment up to 70 years and beyond.

In Japan, the 70s are the new 60. According to data from A survey Made in 2023 by the Ministry of Labor of Japan, 80% of retirement workers wanted to continue working beyond the legal retirement age. Of these, 70% of them would prefer to do so in their current job.

Part of that mood to continue working beyond 70 years is due to Japan registering one of the greatest rates of life expectancy on the planet. According to data from the Ministry of Health, Labor and Welfare of Japan published by Nippon.comJapanese life expectancy is 87.14 years for women and 81.09 years for men. That makes Japanese employees reach their legal retirement age with good health, which allows them to expand their working life by adapting their working days to their physical limitations.

“60 -year -old people are young. In this era of labor shortage, managers need to find ‘older men who contribute value,” said ATSushi Morishita Morishita, 78, founder of Tenpos Holdings.

Pensions in Japan. Another reasons that are leading retirees to maximize their effective retirement age is the amount of pensions. With an aging population, the budget balance of pensions suffers since there are more people in a situation of receiving them What quotes youths.

Retirees can only receive from the public pension system a maximum of 831,700 annual yen (equivalent to about 5,100 euros), which add up to the assignments of private pension funds that workers and companies have hired (or not) throughout working life. According to estimates Bloomberg, that leaves them with an average monthly public pension of 40,000 yen (about 245 euros per month). A full income Insufficient to subsist.

Companies tailored to the elderly. According to them Published figures by Nikkeiemployees over 65 represent around 15% of the company’s workforce in Japan. These employees are less demanding diurnal shifts.

“Instead of fitting people in a system, it is essential to manage work hours in a way that adapts to our diverse talent,” explained to Nikkei Kazushige Mori, president of GASHOEN, a company that manages care centers for older people whose template is formed by 15% of people over 70 years.

Those who work 20 hours or more adopt the status of employees with contract, which is a higher hourly salary than those considered as part -time workers. “Compared to young people, who have a high rotation rate, the senior professionals who work with us for a longer time are the pillar of our company,” said Kimino Osada, president of Sixei Server.

In Xataka | The lack of generational relief is forcing Japan to take desperate measures: that retirees return to work

In Xataka | Japan will pay an old man $ 85 for each day in prison: Half a century has been waiting for the gallows by mistake

Image | Unspash (Nicholas Green)