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Friday, December 24, 2010

Social Security in Japan

Japanese do have a social security system. But their use of the term "social security" is completely different from the way Americans use it. In the United States, social security refers to the old-age pension administered by the federal government and paid for by mandatory deductions from the workers' wages. But in Japan, the term is much more comprehensive.

It refers to a whole range of services which might be thought of as social insurance. And it's not just one system. It's rather complex. It includes such programs as health insurance, welfare assistance, and pension plans.

In some areas it's as good as or better than in other countries. In other areas they could probably stand some improvement. Because of increasing longevity, for example, they need to take another look at their old-age pension programs.

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