Japan’s population is older: great impact over Abenomics

Japanese people aged 70 and older account for more than 20 percent of the total population for the first time at 26.18 million, in further evidence of the country’s rapidly aging society, according to government data.
That marks an increase of 1 million from last year, driven by baby boomers born from 1947 to 1949.

The number of people age 65 and older climbed to 35.57 million, reaching a record 28.1% of the population. They also make up 12.4% of the workforce, the biggest share ever.

The data, released by the Internal Affairs and Communications Ministry ahead of Monday’s Respect-for-the-Aged Day holiday, showed that as of Saturday people aged 70 or above account for 20.7 percent of the population, up from 19.9 percent the previous year.

With the percentage of retirees increasing and the total population declining due to a low birth rate, the government needs to address rising social security costs and a shortage of the working population.

Elderly people — defined as those aged 65 or older — came to a record 35.57 million, up 440,000 from the previous year, making up 28.1 percent of the total population, also a record-high.

Elderly women topped the 20 million mark for the first time at 20.12 million, substantially more than 15.45 million elderly men.

Japan’s proportion of elderly people in the population was the highest in the world, followed by 23.3 percent in Italy, 21.9 percent in Portugal and 21.7 percent in Germany, the ministry said.

The National Institute of Population and Social Security Research estimates that the ratio of the elderly in Japan will reach 35.3 percent in 2040.

Japanese people also appear to be living longer, with those aged 80 or above reaching 11.04 million, up 310,000 from the year before, including 2.19 million aged 90 or older, a rise of 140,000.

Japan’s demographic challenges pose an obstacle to the Abe government’s effort to reignite economic growth, while straining social security programs. The new report adds urgency to this problem.

Japanese companies are now required to let employees stay on until 65 if they so choose. The government will consider asking businesses to allow people to stay employed until 70.

Campaigning in the city of Tsu in central Japan on Sunday, Abe said he wants to let people keep working beyond 65.

Another proposal would push back the starting age for collecting pensions past 70 for those who choose to work longer, Abe said. People choosing to delay benefits would receive a larger payout.

Among the challenges older workers juggle is caring for loved ones. Nearly 2 million people age 65 or older had spouses or other family members that needed care last year. One-quarter of these people were employed.

Raising Japan’s low birth rate presents a related challenge. Abe said he intends to move ahead with plans to provide free public education, using revenue generated by an October 2019 consumption tax increase that he says will happen as scheduled.