The Japanese social security system is undergoing a tremendous scandal.
It seems that through a combination of factors, the social security system may be as much as $175 Billion short.
All Japanese workers, 20-60 are required to contribute to the system. All workers receive approximately $1450/month after the age of 65.
The problem seems to be one of incompetence mainly, with some criminal conduct thrown in.
It seems through huge clerical errors, many people were not credited with the proper work hours, or contributions over the years.
This all came out as a result of a book which suggested that workers check on their accounts with the government. So many came up short of what they should have been credited with, the problems became apparent immediately.
Add in the fact that there have also been several high profile instances of theft by workers in the system and you have a recipe for disaster.
Japan is the world’s second largest economy, behind the US so it should be able to absorb the damage.
What it points out once again, however, is the changing face of the population in the “first” world. Largely aging baby boomers ready to tax the resources of governments.