Japan FY ’24 Social Security Benefits Up 2 Pct at 138 T. Yen

Tokyo, July 29 (Jiji Press)–Japan’s social security benefits for pension, medical and elderly care services under public insurance increased 2.0 pct from the previous year to 138,301.9 billion yen in fiscal 2024, data showed Wednesday. The amount rose for the first time in three years, reflecting the aging of the population and higher prices, according to the data from the National Institute of Population and Social Security Research under the Health, Labor and Welfare Ministry. It was also the second-biggest figure on record, only after the fiscal 2021 result, which was boosted by higher costs amid the COVID-19 pandemic. The social security benefits are the total of expenses on pensions, medical care and elderly care financed with social insurance premiums and taxes. The benefits do not include out-of-pocket payments by users of such services. By category, pension benefits accounted for the biggest part in fiscal 2024, increasing 2.6 pct to 57,852.8 billion yen. The category of welfare and others, which includes elderly and child care services, marked a rise of 6.2 pct to 35,643.6 billion yen, aided by elderly care service fee hikes and the aging population. Meanwhile, medical benefits slid 1.9 pct to 44,805.5 billion yen, falling for the second consecutive year following a decrease in COVID-related expenses. Per capita social security benefits stood at 1,117,100 yen, up 26,400 yen. The ratio of the total benefits to gross domestic product was 21.53 pct, down 0.37 percentage point. All first baby boomers in the country turned 75 or older in 2025. Medical and elderly care costs are therefore expected to increase further. The government plans to draw up a road map to revise out-of-pocket medical expenses borne by people aged 70 or older by year-end to curb an increase in social insurance premiums paid by the working-age generation. Japan also faces a need to restrain benefits. END [Copyright The Jiji Press, Ltd.]