Abstract: Japanese pension insurance, consisting of two parts including the national pension insurance and welfare pension insurance,is a public mechanism under direct government operation and management. Just like that in other developed countries in the world, Japanese pension insurance adopted mechanisms of social insurance, price changes, lifetime pensions, taxes, etc., which plays an important role in income security for the retired elderly people in Japan. Due to the increasing low birthrate and aging in Japan, Japanese government is engaged in continual reforms to establish a national stable and sustainable development system trusted by the public.

Key words: national pension insurance, welfare pension insurance, price changes, low birthrate, aging