Ageing Population: Japan

• Background:

  • Stage 5 of the DTM
  • Life Expectancy is 86
  • 28% of population are under 65 years old.
  • 13% are under 15.
  • Dependency ratio is 70 / 1000
  • Key rates:
  • FR: 1.4
  • BR: 7.1 / 1000
  • DR: 10 / 1000
• Problems of Ageing Population in Japan:

  • Shrinking working population.
  • Fewer children born, more entering retirement age.
  • Shrinking workforce hinders economic growth.
  • Quality of goods and services decrease with spending cuts.
  • 10% of income is taken for tax to support elderly.
  • Labour force shortages:
  • Big increase in caregiving requirements.
  • Pharmaceutical production has increased.
  • High healthcare spending
  • 10% of GDP.
  • Social security accounts for 33% of GDP.
• Solutions:

  • New Angel Plan (1999)
  • Housing children is now easier.
  • Abenomics
  • Increasing the size of workforce by incentivising female labour force.
  • Women who focus on career may not have children, cause FR to decline.
  • Raised ages for retirement and pensions eligibility.
  • By 2025 pension age will be 65 not 60 for men (2030 for women.)
  • Promoting healthier lifestyles.
  • People can work longer and lead to higher productivity.
  • High saving rates.
  • Can reduce future medical bills by encouraging healthier living.