InvestmentWhat Will The Future Of The Japanese Pension System Be, And Are You Ready For Retirement? What Changes Has The Government Pension Investment Fund Just Made?

2 months ago383 min

The GPIF, or Government Pension Investment Fund has just selected its next president, according to a spokesman on Tuesday at the Ministry of Health, Labor and Welfare. Currently, the president is Norihiro Takahashi, but from April 1 (the start of FY2020), Miyazono Masataka will become the new GPIF president. Previously, Mr. Miyazono was the president of the Pension Fund Association, Tokyo, meaning that he certainly has experience in that area. Pension Fund Association, Tokyo controls ¥11.5 trillion (over US$103 billion). He had also previously been the senior executive at Norinchukin Bank (seen in the Featured Image). This is a major bank that focuses on Japanese agriculture. It has $578 billion in assets. Mr. Miyazono has this in common with his predecessor, who also held the same position there.

The GPIF is based in Tokyo. It is the world’s largest pension investment fund, with ¥169 trillion in assets as of December 31, 2019. That is over US$1.51 trillion.

Markets recently have been up and down. Today, the Nikkei 225 has surged over 6%, though previously the stock market had been in freefall. This is largely due to the coronavirus.

Investors might wonder what kind of investment produces strong returns (higher than typical savings accounts, Money Market accounts, CDs, or bonds) that is not as volatile as the stock market. Especially because the GPIF’s funds are becoming stretched increasingly thin with the low birth rate and aging population, in which over ¼ of the population is elderly. If you are reading about the GPIF, chances are you have some connection to Japan. Have you ever considered investing in Japanese real estate for passive income? Why Tenants In Japan Are Great Investments