Toyota to Introduce New Retirement Plan for its Japanese Employees image

Toyota prepares a retirement package for retirees in Japan aged 60 to 64, which will help them with living expenses until they will reach their public pension benefits.

According to the automaker this move was necessary to fill the void created by the government’s plan to raise the retirement age to 65 from 60 in April 2013. Toyota, which has 69,000 employees in Japan, took this action in response to its workers’ concern regarding this issue.

Under the company’s program, employees who are 18 when they join the automaker will set aside about ¥8,300 (~75 euro) per month over a 42-year period and during the employees’ early retirement years, Toyota will offer them about ¥210,000 (~1,800 euro)per month.

Toyota also plans to divert part of its welfare benefits, allowances and wages to fund the new system. But the living expenses for an average couple are about ¥2,500 per month, therefore the rest of the money will be offered by an in-house savings program.

Although the retirement package will be offered to all employees, not only to those who wish to join it, the workers aged 40 at the beginning of the scheme, will receive only about 2 million yen (~18,000 euro), compared with 4.2 million yen (~37,000 euro) for the younger employees.