This study considered the relationship between the younger generation’s understanding of public pension plans and the effect of education about pensions in Japan. University students’ understanding of public pension plans were investigated, in addition to the effect of education about pensions in Japan. The results show that the Japanese National Pension Plan will experience major difficulties in the future and has a low evaluation internationally. It is left to the younger generation to resolve these difficulties. While most Japanese university students affirmed the value of Japan’s National Pension Plan, they do not have a deep understanding. They learned about the public pension plan through social studies and television news reports; however, this was insufficient for a better understanding of pension plans. Therefore, the younger generation should have access to project-based learning about the public pension plans at home, at school, and in society.