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Wednesday, January 12, 2011

Retirement Age in Japan

In general it's lower in Japan than in other industrialized countries. Until recently, compulsory retirement at age fifty-five was widespread. Now it's been raised to sixty by most Japanese companies. But the concept of compulsory retirement is different in Japan than the West.

In most other countries, retirement means retirement. In Japan it more often means that the person goes right back to work, maybe even for the same company, but in a temporary or part-time capacity. That is because the compulsory retirement age is set too low. Few workers are ready to retire at sixty. Employers know this. But they need to make room for young, new, entry-level employees. So the retirees are given part-time positions.

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