Expectations of Economic Recovery and Anxiety for the Future

From the July 2004 Survey, How People Feel About the Economy and their Current Standard of Living

October 2004

Reflecting the recent economic upturn, 50 % of the respondents feel “leading a comfortable life (combining “quite comfortable” and “somewhat comfortable.” Up from last year's 46 %, it shows improvement in sense of affluence about living standard among the Japanese public. However, it is far cry from loosening up their wallet, and 8 % of the respondents feel some anxiety about their future including their retirement life. A major factor of the anxiety comes from the opaqueness about the future social security, especially pension scheme that is supposed to secure their old age.

As the laws on pensions reform were enacted recently, the survey asked people whether the pension system would be stabilized in the future. Only 1% of the respondents think, “It will be stabilized significantly” and 12 % think, “It will be stabilized to a certain extent,” revealing the public's harsh evaluation. The young and the elderly have different viewpoints on the social security system, namely whether to maintain pension benefit level even if it will requires more burden or to lower the benefit in order not to raise the burden, or whether to maintain the welfare standard or to promote citizen's self-help efforts. Thus, conflict of interests between generations is revealed.

Examining the difference in perception between generations, the survey indicates young people, who should be the backbone of society, are quite pessimistic. For example, 63 % of men aged 20 to 39 feel “living a tough life.” This is a higher proportion than any other age groups.

To balance the conflicting interests of generation that will have to shoulder the burden and generation that will be benefited is a big challenge facing the social security system including the pension scheme. In seeking solution to this, it is necessary to focus on the reality that generation that should play a pivotal role in the future is pessimistic about the Japanese economy and their own livelihood.

Takemaru NAKASE / Rika YAMAUCHI, NHK BCRI Public Opinion Research
The NHK Monthly Report on Broadcast Research