Japan retirement benefits: Lump-sum payments dominate over pensions

Data regarding retirement benefit systems in Japan indicates that 69.0% of companies offering such benefits provide only lump-sum payments, while only 31.0% offer pension-based systems.

Personal accounts of post-retirement life highlight the tension between financial security and personal fulfillment. One individual, a 69-year-old former manufacturing employee, shared his experience of choosing re-employment over immediate retirement to mitigate financial anxiety. Despite receiving a combined monthly pension of approximately 220,000 yen with his spouse, the loss of a monthly salary led him to continue working under annual contracts. This decision resulted in the postponement of personal goals, such as traveling and hiking, until health and circumstances changed.