Better Place Forms Business Alliance with Tsukuba Bank to Expand Adoption of "Hagukumi Corporate Pension" for Employee Retention

Better Place Co., Ltd. (Headquarters: Shinjuku-ku, Tokyo; Representative Director President CEO: Shinji Morimoto; https://bpcom.jp/; hereinafter, Better Place), which supports the introduction and design of corporate pension and retirement allowance systems, primarily focusing on the "Hagukumi Corporate Pension Fund" (hereinafter, "Hagukumi Corporate Pension"), announced a business alliance with Tsukuba Bank, Ltd. (Headquarters: Tsuchiura City, Ibaraki Prefecture; Representative Director President: Masahiko Ikuta; hereinafter, Tsukuba Bank) to support companies facing challenges in retaining human resources. This is the first alliance with a financial institution based in Ibaraki Prefecture.

**Purpose of this Business Alliance**

This alliance aims to solve the challenges companies face in retaining human resources. Through this alliance, Tsukuba Bank will introduce the "Hagukumi Corporate Pension" promoted by Better Place to corporate clients struggling with human resource retention, aiming for its adoption by companies within its business area, primarily in Ibaraki Prefecture. The "Hagukumi Corporate Pension" is a defined benefit corporate pension system, and by being established as a company's "monetary welfare," participating employees can securely form assets for the future with principal guaranteed*¹. Companies, by supporting their employees' asset formation, can expect an improvement in engagement and retention rates.

*¹If a shortfall occurs due to investment performance, the employer will cover the difference.

**Status of Corporate Pension System Development in SMEs**

While SMEs account for a very large proportion of all companies in Japan at 99.7%, and employees working in SMEs account for 69.7%*², only a mere 16%*³ of companies with 30 to 99 employees have a retirement pension system. By utilizing the "Hagukumi Corporate Pension," we aim for further widespread adoption so that more SMEs and their employees can benefit from the corporate pension system.

(Source) *²Small and Medium Enterprises Agency (June 2021) https://www.smrj.go.jp/recruit/environment.html

*³Ministry of Health, Labour and Welfare (MHLW) "Current Status and Issues of Public and Private Pensions" (2023) https://www.mhlw.go.jp/content/10600000/001177171.pdf

**About "Hagukumi Corporate Pension"**

Currently, Japan is experiencing a "decrease in the working population" due to a declining birthrate and an aging society, resulting in a chronic labor shortage. Furthermore, the most common reason for young workers to leave companies is financial reasons*⁴, and the number one concern for the working generation regarding old age is "money"*⁵.

The economic disparities arising from company size and residential area significantly impact future asset formation and retirement funds. We are promoting the introduction of the "Hagukumi Corporate Pension" system, which benefits both companies and employees, primarily to support SMEs and their workers.

The "Hagukumi Corporate Pension" is a defined benefit corporate pension (DB) that can be joined by employees (including non-regular employees) and executives who are enrolled in the Employees' Pension Insurance. Employers can establish a corporate pension and retirement allowance system while keeping costs down. Furthermore, a research study conducted in 2025 statistically proved that the introduction of this system has a high probability of leading to improved employee engagement and prevention of employee turnover*⁶. Supporting these research results, it has been well-received as "monetary welfare" to help employees work with peace of mind, particularly in SMEs and the welfare industry where labor shortages are becoming severe.

Benefits for employees include not requiring difficult investment knowledge and a principal guarantee*¹. Compared to company-type DC (defined contribution pension) and iDeCo (individual-type defined contribution pension), which generally cannot be received until age 60 or older, the basic premise is the same: saving for asset formation in old age. However, instead of receiving it as a pension, it can also be chosen to be received at the time of retirement, temporary leave, or childcare/nursing care leave, hence it has garnered strong support from employees who anticipate childcare or nursing care in the future.

Currently, approximately 95% of the corporations that have adopted the system are small to medium-sized corporations with 300 or fewer employees*⁷, and about one-third of these corporations are related to welfare, medical, or education*⁸.

*¹If a shortfall occurs due to investment performance, the employer will cover the difference.

Service introduction site URL: https://bpcom.jp/hagukumikikin/

(Source)

*⁴Ministry of Health, Labour and Welfare "Overview of the 2023 Survey on the Employment Situation of Young People"

https://www.mhlw.go.jp/toukei/list/dl/4-21c-jyakunenkoyou-r05_gaikyou.pdf

*⁵Financial Services Agency "Report by the Financial System Council's Market Working Group on Asset Formation and Management in an Aging Society" June 2019

https://www.fsa.go.jp/singi/