Better Place Announces Business Partnership with Tsuji-Hongo Insurance

Better Place Co., Ltd. (headquartered in Shinjuku-ku, Tokyo; President and CEO: Shinji Morimoto; https://bpcom.jp/; hereinafter "Better Place"), which supports the introduction and design of corporate pension and retirement benefit systems centered on the "Hagukumi Corporate Pension Fund," announces a business partnership with Tsuji-Hongo Insurance Co., Ltd. (headquartered in Shinjuku-ku, Tokyo; Representative Director: Koyo Hongo; hereinafter "Tsuji-Hongo Insurance") to support companies facing challenges in employee retention.

Through this partnership with Tsuji-Hongo Insurance—the dedicated insurance arm of Tsuji-Hongo Group, one of Japan’s largest accounting firm networks—Better Place will further accelerate the promotion of the "Hagukumi Corporate Pension Fund" to small and medium-sized enterprises (SMEs) suffering from severe labor shortages.

Purpose and Background of the Partnership

Labor shortages in SMEs have become a serious challenge, making talent acquisition and retention urgent priorities for businesses. At the same time, employees are increasingly concerned about financial security amid rising living costs, leading to growing demand for asset formation and wage increases. As a result, companies are expected to enhance employee benefits as part of their overall business strategy.

Better Place believes that collaboration with accounting firms—key strategic partners for business owners—is essential to addressing these challenges. To date, the company has established partnerships with over 400 accounting firms and tax offices.

Meanwhile, Tsuji-Hongo Insurance, as the specialized insurance arm of one of Japan’s largest accounting firm networks, leverages its advisory network of over 17,000 client companies to provide insurance and financial planning (FP) services. In recent years, the company has seen increasing inquiries from its clients regarding the establishment of retirement and employee benefit systems, driven by worsening labor shortages and hiring difficulties.

Previously, Tsuji-Hongo Insurance offered solutions utilizing life insurance, property insurance, and corporate-type defined contribution pension plans (DC). With the addition of the defined benefit corporate pension plan "Hagukumi Corporate Pension Fund," the company can now offer comprehensive proposals across the "four pillars" of retirement systems: 1 corporate-type defined contribution pension (corporate DC), 2 defined benefit corporate pension (DB), 3 SME retirement allowance mutual aid system, and 4 retirement lump-sum payments using life insurance.

By introducing the "Hagukumi Corporate Pension Fund" as a "financial welfare benefit" for companies, employees (including non-regular workers) and officers can build assets for the future with peace of mind under principal protection*1. Employers can also support employee asset formation, thereby enhancing engagement, retention, and recruitment—making this system a powerful support tool for clients. This shared vision led to the current partnership.

*1 If investment performance results in a shortfall, the employer covers the difference.

*2 Source: "Survey on Factors Influencing Participation in the 'Hagukumi Corporate Pension Fund' and Its Business Impact" (October 2025)

(Joint survey by Better Place Co., Ltd. and Dr. Koji Nishikubo, Professor Emeritus, Yamanashi University, and Welfare Strategy Research Institute; 2,744 respondents)

Comment from Mr. Koyo Hongo, Representative Director, Tsuji-Hongo Insurance Co., Ltd.

"Tsuji-Hongo Group has aimed to be a 'lifelong partner' to SME owners by providing integrated tax, accounting, legal, and insurance services. Through this partnership with Better Place, we can now add defined benefit corporate pensions (DB) to our offerings, completing the 'four pillars' of retirement systems. As labor shortages intensify, creating an environment where employees can work with confidence and long-term security has become a critical business issue directly linked to sustainable corporate growth. The 'Hagukumi Corporate Pension Fund' is easy to implement and includes principal protection*1, attracting strong interest especially from SMEs and healthcare providers. Leveraging our network to the fullest, we aim to contribute to the future of more companies and their employees."

*1 If investment performance results in a shortfall, the employer covers the difference.

Current Status of Corporate Pension Adoption Among SMEs

SMEs account for 99.7% of all companies in Japan and employ 69.7% of the workforce*3. Yet, only 16% of companies with 30–99 employees have a retirement pension system*4. Better Place aims to further expand adoption of the "Hagukumi Corporate Pension Fund" so more SMEs and their employees can benefit from corporate pension systems.

*3 Japan Organization for Small and Medium Enterprises and Regional Innovation (October 2021) https://recruit.smrj.go.jp/environment.html

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

About the 'Hagukumi Corporate Pension Fund'

Japan currently faces chronic labor shortages due to declining and aging populations, leading to a shrinking workforce. Economic reasons are the top reason young workers leave companies*5, and financial concerns are the number one worry about retirement among working generations*6.

Economic disparities based on company size and region significantly impact future asset formation and retirement savings. To support primarily SMEs and their employees, Better Place promotes the "Hagukumi Corporate Pension Fund," a corporate pension system that benefits both employers and employees.

The "Hagukumi Corporate Pension Fund" is a defined benefit corporate pension (DB) available to all employees (including non-regular workers) and officers who are covered under Employees' Pension Insurance. Employers can establish a corporate pension or retirement system while controlling costs*7. A 2025 research study statistically confirmed that adopting this system is highly likely to improve employee engagement and reduce turnover*2. These findings are supported by positive feedback from SMEs and welfare-sector organizations—industries facing acute labor shortages—where the fund is praised as a "financial welfare benefit" that helps employees work with peace of mind.

Key benefits for employees include no need for investment expertise and principal protection*1. Unlike corporate-type defined contribution pensions (corporate DC) or iDeCo (individual-type defined contribution pensions), which require members to be at least 60 years old to withdraw funds, the Hagukumi Corporate Pension Fund allows withdrawals not only at retirement but also during leave of absence, parental leave, or caregiving leave. This flexibility has earned strong support from employees anticipating future childcare or caregiving responsibilities.

Currently, approximately 95% of adopting organizations are SMEs with 300 or fewer employees*8, and about one-third operate in welfare, healthcare, or education sectors*9.

*1 If investment performance results in a shortfall, the employer covers the difference. *7 When the cost-saving effects of implementing the system exceed implementation and administrative expenses (actual burden may vary depending on company size and employee participation rate)

Service website URL: https://bpcom.jp/hagukumikikin/

(Source)

*5 Ministry of Health, Labour and Welfare, "Overview of the 2023 Survey on Employment Conditions of Young Workers"

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

*6 Financial Services Agency, Financial System Council, Market Working Group Report "Asset Formation and Management in an Aging Society" (June 2019)

https://www.fsa.go.jp/singi/singi_kinyu/tosin/20190603.html

*2 Source: "Survey on Factors Influencing Participation in the 'Hagukumi Corporate Pension Fund' and Its Business Impact" (October 2025)

(Joint survey by Better Place Co., Ltd. and Dr. Koji Nishikubo, Professor Emeritus, Yamanashi University, and Welfare Strategy Research Institute; 2,744 respondents)

Press release: https://prtimes.jp/main/html/rd/p/000000145.000074850.html

*8 Calculated from insured person counts at contract signing for organizations adopting the fund between April 2018 and September 2025 (excluding withdrawals)

*9 Calculated from industry classifications of organizations adopting the fund between April 2018 and September 2025 (excluding withdrawals)

※ Number of workplaces and participants: as of March 2026

※ Average employee contribution: as of September 2025

※ Basis for average participation rate calculation

Simple average of participation rates at adoption for each workplace.

Period: Organizations adopting between October 2024 and September 2025 (2,001 corporations, 2,044 workplaces)

Participation rate: Number of actual participants / Number of Employees' Pension Insurance covered employees (excluding those ineligible for fund membership)

Average participation rate by company size: 30 or fewer Employees' Pension Insurance members: 77.2%; 31–300 members: 66.6%; 301 or more members: 50.5%

Tsuji-Hongo Insurance Co., Ltd.

<Company Overview>

Company name: Tsuji-Hongo Insurance Co., Ltd.

Representative Director: Koyo Hongo

Headquarters: 31F, Shinjuku Center Building, 1-25-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Established: October 1, 2024 (by corporate split, succeeding the insurance business of Alpha Step Co., Ltd.)

URL: https://www.th-insurance.com/

Better Place Co., Ltd.

Our corporate mission is "to create a society where working parents and children can live with hope through business." We aim to build a society where ordinary people—not just the wealthy—can work without financial stress and live authentically.

Many SME employees and essential workers perform vital roles supporting society, yet their income levels are often lower than those at large corporations. Additionally, many do not have access to corporate pension or retirement systems at their workplaces, preventing them from fully benefiting from such programs.

Financial worries about the future can lead to reduced quality of life (QOL) and psychological barriers to having and raising children with confidence.

'Burden inequality' regarding future prospects—Better Place exists to solve this challenge.

<Main Services>

Provision of 'HagONE,' a digital transformation system for corporate pensions

Design and support for introducing corporate pension and retirement systems through the 'Hagukumi Corporate Pension Fund for Welfare'

Design and support for introducing corporate-type defined contribution pension plans

<Company Overview>

Company name: Better Place Co., Ltd.

Headquarters: 15F, Sumitomo Ichigaya Building, 1-1 Ichigayahonmura-cho, Shinjuku-ku, Tokyo

Representative: President and CEO Shinji Morimoto

Established: October 17, 2011

URL: https://bpcom.jp/

For Tax Professionals (Inquiry Contact)

Better Place is continuously seeking tax professionals who can introduce the "Hagukumi Corporate Pension Fund" to their clients. We welcome your inquiries.

<Tax professional inquiry link>

https://hub.bpcom.jp/agency_recruitment