ABSTRACT
During the lost decades, Japan has experienced population ageing that was globally unprecedented in its swiftness. The graying of Japanese society is in many ways a mark of the growth and success of Japan's postwar economy. However, due to the growing stress on financing social security arrangements caused by both demographic and economic factors, since 1980 Japan has been carrying out repeated pension reforms every five years. The Pension Reform of 2004 made a substantial stab at balancing pension benefits and contributions over the next century, and it is generally considered to be one of the most successful areas of social security reform. The main focus of the political debate on financing Japan's social security system has tended to be on pensions, an issue that was solved in 2004 as far as fiscal sustainability is concerned.
