1. Elderly Welfare
in Germany and Japan
Rita, Wan Tsz Lun 08036691
Airin, Tse Yan Yi 07016433

2. Contents
• Background
- What is welfare?
- Why Germany and Japan?
• Ageing in both countries
- Long life expectancy
- Low fertility rate
• Elderly Welfare System
- Long-term Care Insurance (LTCI)
- Retirement and Pension System
• Challenges and Solutions
• Opportunity – elderly goods
• Conculsion
Rita, Wan Tsz Lun (08036691)

3. What is welfare?
- promotes the well-being of individuals in need
- includes monetary payments, health services,
housings
Why do we compare Germany and Japan?
- Similar challenges -- ageing population
- Similar Elderly Welfare System
- Similar trends to push for change
Rita, Wan Tsz Lun (08036691)

4. •≧65 years old: more than 7%; or
•≧60 years old: more than 10%
Airin, Tse Yan Yi (07016433)

5. Airin, Tse Yan Yi (07016433)
Source: Statistisches Bundesamt Deutschland

6. Airin, Tse Yan Yi (07016433)
Source: BBC News

7. Airin, Tse Yan Yi (07016433)
Source: World Bank

8. Source: World Bank
Airin, Tse Yan Yi (07016433)

9. Long-term Care Insurances
Germany Japan
Beneficiaries Elderly people are assigned to three
levels:
1.Level I – Considerable
(90 min/day)
2.Level II – Substantial
(3 hours/day)
3.Level III – Most Substantial
(5 hours/day)
Two types:
1.Type 1:
65 years old and older
2.Type 2:
between 40 to 65 years old who
have diseases associated with
ageing
Rita, Wan Tsz Lun (08036691)

10. Long-term Care Insurances
Germany Japan
Benefits
Facilities ,
Services
1. Home-based Care
2. Semi-residential Care Facilities
- Day care
3. Supplementary Services
- Meals on wheels
- Counseling
- Senior clubs
1. Home-care Services
- Nurse visiting
- Home visiting bathing
services
2. Institutional Services
- Long-term care health and
medical facilities
3. Care Management Service
Cash Type I: 205€ /month
Type II: 410€ / month
Type III: 665€ / month
N/A
(cash options are not available)
Home-based
Services
Maximum : 1,918€ /month (Type III) Maximum: 3,166€/month (care
level 5)
Rita, Wan Tsz Lun (08036691)
Airin, Tse Yan Yi (07016433)

11. Airin, Tse Yan Yi (07016433)
Private company plansPrivate company plansPublic retirement
insurance
Public retirement
insurance
Private individual
retirement investments
Private individual
retirement investments

12. Source: Ministry of Health, Labour and Welfare
Rita, Wan Tsz Lun (08036691)
Airin, Tse Yan Yi (07016433)
“Salary man”“Salary man” Civil
Servant
Civil
Servant
Self
-employed
Self
-employed
2nd
Type of Pensioner2nd
Type of Pensioner1st
Type of
Pensioner
1st
Type of
Pensioner
3rd
Type of
Pensioner
3rd
Type of
Pensioner
Spouse of 2nd
Type of
Pensioner
Spouse of 2nd
Type of
Pensioner
National Pension InsuranceNational Pension Insurance
Employees Pension
Insurance
Employees Pension
Insurance
Personal type Defined Contribution
Pension Plan
Personal type Defined Contribution
Pension Plan
Official
Pension
Insurance
Official
Pension
Insurance
Employer-sponsored type Defined
Contribution Pension Plans
Employer-sponsored type Defined
Contribution Pension Plans

13. • 1970
• 2025~30
Airin, Tse Yan Yi (07016433)
>_< >_<
The system is
under strain!!
The system is
under strain!!

14. Solutions
Challenges
Germany Japan
Declining
Fertility
- New Law in 1995:
Schwangeren- und
Familienhilfeänderungsgesetz
(Law concerning pregnant
women and new forms of
support for families)
- Child benefit(up to 2 years
old): 300€ per month
- Income threshold for parental
leave benefit reduced
Family Policy : Child
Benefit (3-12 years
old)
- to encourage young
couples to have
children
-under 3 years old,
5,000 Yen 10,000
Yen
Rita, Wan Tsz Lun (08036691)
Airin, Tse Yan Yi (07016433)

15. Solutions
Challenges
Germany Japan
Funding According to Agenda 2010:
- age of pension eligibility
increased from 65 to 67
- Pension reduced:
70%  67% of net pay
- not be eligible for early
retirement before 64
Mehrgenerationenhäuser
(Multi-generations Centres)
Age of pension
eligibility increased from
60 to 65
Patients have to pay
more fee: 10%  20%
Rita, Wan Tsz Lun (08036691)
Airin, Tse Yan Yi (07016433)

16. Airin, Tse Yan Yi (07016433)

17. Rita, Wan Tsz Lun (08036691)

18. A warning for other developed and developing
countries
A model for other developed countries in future
Airin, Tse Yan Yi (07016433)