Defined Contribution (DC) Pension System Ready for Reform : Growing Need to Improve Investment of DC Assets

Japan, with its declining birthrate and aging population, must inevitably reduce the role of public pensions and seek a more prominent role for private pension plans. This report presents the recent developments in the reform of the defined contribution (DC) pension system in Japan. With proposals coming from a number of sources, including the government's 2014 growth strategy, the momentum for reform has never been greater, raising expectations for the resolution of a number of long-standing issues, including expansion of the DC plan coverage, increasing the upper limits for DC contributions, and reform of the DC investments