Meiji Yasuda Life Insurance Co. plans to extend its compulsory retirement age to 70 from the current 65 from fiscal 2027, making it the highest among major Japanese financial institutions amid the country's labor shortage, sources familiar with the matter said Monday.
About 10,000 employees at the Tokyo-based life insurer, excluding sales personnel, will become eligible under the new system. The company is now in talks with its labor union over the plan, the sources said.
The move is in line with the government's push to increase the number of elderly workers to secure a large enough workforce amid a declining population.
In April 2021, Japan enforced a law to encourage companies to allow their employees to work until they are 70 if they wish to.
Under the plan, Meiji Yasuda's employees aged 65 or above will be able to choose to work for shorter hours a day or three days a week, while the same salary could be offered after reaching 65 depending on their duties.
At many Japanese companies, the retirement age is often set at 60. But most companies rehire their employees until 65 typically with wages significantly lower than before the retirement age.
Meiji Yasuda extended its retirement age to 65 from 60 in fiscal 2019.
