Japan Plans To Unshackle Huge Pension Fund | Free Malaysia Today

June 16, 2014

Japan-Flag The nations pension programme, into which almost all citizens pay, is supported by the worlds http://geraldagav.skyrock.com largest investment fund, worth a staggering US$1.26 trillion equivalent to one-quarter of the countrys entire economy. It towers over its nearest competitor the US$700 billion belonging to Norway and is multiples of the US$173 billion holdings of Temasek, the Singaporean sovereign wealth fund. But, unlike some other more adventurous vehicles, the Government Pension Investment Fund (GPIF) keeps by far the majority of its cash in super-safe and super low return Japanese government bonds. Now all that could be about to change, as Prime Minister Shinzo Abe shuffles into place the next piece of his Abenomics jigsaw puzzle. The bid to shake up Japans slumbering economy after two decades of drift began in early 2013 with a huge public spending bonanza and unprecedented monetary tape easing from the Bank of Japan. But, 18 months down the line, the initial sugar rush is fading, and Abe must now put in place some tapes of the structural reforms he and most economists say are necessary. Not least of which is getting more bang for the buck on the public pension fund to help a shrinking number of workers pay for a growing number of retirees. About half of Japans social security budget goes on pensions, a figure equal to around 12% of the entire economy.
Read more: http://www.freemalaysiatoday.com/category/business/2014/06/16/japan-plans-to-unshackle-huge-pension-fund/

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