An insurer-led survey has revealed that more Japanese consumers are planning to scale back their expenses during summer vacation due to concerns over shrinking pension revenues.
The study, commissioned by Meiji Yasuda Life Insurance, showed that respondents’ average spending for summer vacation in 2019 dropped to ¥68,071 (US$630), down ¥15,743 (US$146) from 2018. This is the lowest figure since the survey began in 2005
“People are getting keen to save money in the medium- and long-term as the topic of how to fund post-retirement life prevails,” Meiji Yasuda Life Insurance chief economist Yuichi Kodama was quoted as saying by Kyodo.
The online survey was conducted from June 17 to June 24, and polled 1,120 individuals aged 20 to 59.
More than one-third (34.6%) of respondents said that they are reducing expenses for their summer vacation “to prepare for future spending,” while 31.4% planned to deposit the money into their savings accounts. Almost 30% of respondents said that they are reducing spending ahead of October’s consumption tax hike.
While post-retirement resources are typically problems of middle-aged and elderly people, the survey revealed that younger individuals are thinking more about saving money.
Among respondents in their 20s, 47.4% of men and 42.3% of women said they plan to shore up their savings.
In line with lower spending, majority of respondents (56.2%) said they “will just relax at home” for their vacation. Meanwhile, 14.6% said they will visit parents or relatives, while 13.4% said they will travel within Japan instead of overseas.
