◆The money needed by the time i get a pension at the age of 60 is 20 million yen!?
20 million yen!? It is a big amount of money.
The so-called “20 million yen problem” reported by the Financial Services Agency’s Financial Council in May 2019 is a new part of my memory, but after the age of 65, i.e. a deficit of 50,000 yen per month with a public pension alone, 600,000 yen a year, and about 20 million yen in retirement in 30 years.
20 million yen in this article is the story of the previous five years. If you quit your job at the age of 60, you will be explaining the shortfall in the five years until the age of 65, when your pension is paid.
◇If you continue to spend five years on average monthly consumption expenditures in working households……
This amount is the total amount of money spent as a living expense for five years from retirement to receiving a pension if you continue to live at an average monthly consumption expenditure of 288,026 yen (from the Ministry of Internal Affairs and Communications”Reiwa Household Survey for two or more people” for the first time in the past year.
When calculated, it is as follows:
Cost of living 288,026 yen per month × 12 months x 5 years = 17,281,560 yen
In addition to the cost of living, if you consider buying a car, renovating, or traveling, you will need another 2 million to 5 million yen. It is safe to expect at least about 20 million yen.
This amount is only the average amount, so it depends on the household budget. How much money is your household spending a month now? If you take the amount as a guide and replace it with the cost of living of the above formula, you will get a certain sense.
◇After retirement, you will live a comfortable life. lower the standard of living
Because free time increases more than now, if you want to live a comfortable life, you need a positive alpha than the current living expenses, and if you are good at the same standard of living as you are now, the same amount as the current amount, if you drop the standard of living because there is no income, it will be a lower amount than now.
I want to live a comfortable life
Cost of living 400,000 yen (monthly) × 12 months x 5 years = 24 million yen
●Lower the standard of living
Cost of living 200,000 yen (monthly) × 12 months × 5 years = 12 million yen
In any case, when you retire at the age of 60, you will have 10 million to 20 million yen of money in the next five years before receiving your pension. It seems that the retirement allowance will disappear soon, too.
What do you think about the future?
For approximately 3,200 people in 2019, let’s read from the data compiling the results of a questionnaire survey conducted by the Central Committee for Financial Public Relations.
The following is excerpted from the “Poll on Financial Behavior of Households (Survey of Two Or More Households) 2019”.
I’m a little worried…… 40.7%
I’m very worried. 47.6%
I’m not too worried… 11.1%
88.3% of respondents said they were worried, well above the 11.1% who said they were not worried.
The main reasons for this are:
Why are you worried about your life in old age?
Because the pension and insurance are not enough…… 73.3%
There are not enough financial assets. 69.7%
Because there is no composure in the present life and it is not prepared for old age…… 39.1%
Because the retirement allowance is not enough…… 27.8%
Both of these factors are worrisome, such as the lack of pension and savings that support Second Life.
How do you think about pensions?
How to think about pensions
It is difficult to cover the daily expenses. 47.3%
・There is no room, but i can cover the daily life expenses…… 47.1%
・You can live without much inconvenience with your pension. 4.3%
About five percent said that life on a pension alone was difficult, but five percent said that they could live without disabilities or or living without life. At the moment, many people seem to be optimistic.
The level of pension benefits will change between the generation that is receiving the pension and the generation receiving the pension in the future, so optimistic responses will decrease in the future.
◇The number of employees over the age of 10 years is increasing year by year.
What do you think of second life’s revenue streams?
Income from living expenses in old age
Public pension… 88.5%
Income from employment… 31.8%
Corporate pension, personal pension, insurance… 31.1%
・The collapse of financial assets…… 28.4%
Real estate income…… 8.1%
After all, there seem to be a lot of people who think that the public pension becomes the center of the income in Second life, and it works next and the income is obtained.
This sentiment is also a part of the Ministry of Internal Affairs and Communications’s Labor Force Survey of the Year of the Reiwa, and the total population of the people over the age of 100,000 continues to increase year by year, and now accounts for 8.98 million workers and 68.88 million total workers.
Compared to before, it seems to be a tailwind that the Employment Stability Law for the senior son of the year has required employees up to the age of 65 to provide employment opportunities, and that new employment insurance, which allows employees to use unemployment benefits and vocational training, is now possible even if they are over 65 years old.
◆The impact of the extension of retirement on households is great.
Many people seem to want to work after the age of 60 for economic or health reasons, and for living purposes, but the financial situation of households changes greatly during the five years before receiving a pension, if you work and if you do not work.
Please refer to the figure. When the sum of retirement and savings accumulated until then is 30 million yen at the time of retirement 60, the monthly living expenses are 300,000 yen (3.6 million yen per year) in the case required, and if you do not work after that and work in re-employment ( 200,000 yen per month ) and what the household’s property will look like.
If you retire at the age of 60, your savings will be reduced to 12 million yen at the age of 64 just before you receive your pension. In the next five years, we will be demolishing about 2/3 of that, so it is also difficult to increase the initial 30 million yen through asset management.
On the other hand, if you work until the age of 65, the balance of savings at the time of 64 years of income of 200,000 yen per month is 24 million yen. If you expect 300,000 yen in monthly income, you can maintain 30 million yen without reducing your savings.
You don’t have to take down your savings, so you can raise them with asset management in the meantime. It is a calculation that it is possible to make 38.29 million yen in five years up to the age of 65 if 30 million yen is operated by 5%.
At the time of the age of 10,000,000 yen, the property is on hand, or the property is 1,000,000 yen or 1,000,000 yen, or the This difference is large, isn’t it?
Now, what are you going to do with your second life?
Let’s think carefully about what kind of Second Life you want to spend and what you need to do now!
Fumi:Hiroaki Hirata (Money Guide)