Why pension tsunami is not over for Japanese companies

  • October 7, 2021

By James DornanSeptember 28, 2018 11:06:17Japanese companies will likely face a tsunami of pension debt as pension funds around the world face an unprecedented flood of retirements amid the global economic meltdown.

Japan has the world’s largest retirement savings fund and has been grappling with an unprecedented wave of pension liabilities from firms that have defaulted on their obligations.

Japanese pension funds in particular are facing a wave of retiree debt that could wipe out about $40 billion of their assets, a financial analysis firm found.

The firm’s analysis, based on data from 10 pension funds and a survey of investors, projects that the total pension liability for Japanese pension funds could hit about $20 billion.

The firms have been forced to refinance or sell their pension obligations.

The wave of defaults from pension funds comes as the U.S. and other major economies struggle with a global recession that is likely to remain as deep as a global financial crisis.

With the global economy in a deep recession, the pension liability of U.N. nations, including Japan, has grown significantly, according to the Tokyo-based consulting firm SBI Capital Markets.

The global pension system is at risk of a massive tsunami of retirement debt as global firms, including pension funds, are forced to make changes and refinance, according an analysis of data by SBI and the Financial Times.

It is expected to cost the world around $10 trillion in the next 10 years to replace retirees, said Yukio Saito, senior managing director of the pension fund at Mitsubishi UFJ Asset Management in Tokyo.

The total liabilities of all of the U, S, M and A major pension funds combined will reach $40 trillion, according the SBI analysis.

The amount of pension-related debt is expected rise from $3.5 trillion today to $8 trillion by 2025, he said.

The pension liability is not just a concern for pension funds.

Japan’s government, which manages the pensions of about 200,000 retired workers, has been unable to keep pace with the number of retirees who have retired, forcing it to make massive restructuring plans and renegotiate pensions for its members.

The crisis is already having a financial impact on Japanese companies.

A number of Japanese companies have already filed for bankruptcy.

The number of bankruptcies in Japan has surged from less than 500 in 2011 to nearly 2,000 in September 2018, according a Bloomberg survey.

Australia to reduce pension costs, pensions to rise

  • July 5, 2021

Pensioners in Victoria and New South Wales will have to pay more for their pensions, the Victorian Government has announced.

The decision is part of a $30 billion package announced by Prime Minister Daniel Andrews on Monday, but will come with some significant cuts to some public sector pensions.

Mr Andrews said there was no way to pay for them with less revenue.

The Government is also looking to reduce the number of public sector workers it has, and will announce a new pay scale and a new pension scheme early next year.

Mr Scott said that in order to ensure the Government can continue to deliver its promised savings and boost the economy, he would also seek to improve funding for the ABC, which has been hit by budget cuts.

The ABC will lose around $10 million a year in 2018-19.

The broadcaster has also been under pressure over the past year to reduce its workload, with the number and types of shows being curtailed.

Mr Swan said that was why he would increase the number, as well as look at ways of ensuring the ABC was “better prepared to meet the needs of future generations”.

He said the Government was committed to making Australia the “most digitally connected country in the world”.

He called for the “gold standard” of the ABC to be the Digital Media Awards, to be held in November next year, in a bid to attract the highest-rated programming.

“That’s the most prestigious award the country can get,” Mr Swan told the ABC.

“It’s a celebration of the work the ABC has done, and it’s something we’re committed to delivering.”

The ABC was once the envy of the nation, with more than 10 million people subscribing to the channel, and with the network making billions of dollars in advertising.

It was also a major source of revenue for the Government.

The number of hours it broadcast has decreased by about 50 per cent over the last 10 years.