Nearly half of Japanese workers could be aged 50+ by 2035
Japan is one of the few ‘super-ageing’ societies across the world. Nearly half (47%) of the population is already aged 50 and over, and this is set to increase to 54% by 2035.
A new report launched by the International Longevity Centre UK (ILC-UK) today at an event at the British Embassy in Tokyo highlights that as Japan’s population is ageing, older people are increasingly important to the economy as workers, spenders, volunteers and carers. The report argues that the economic recovery from COVID-19 and long-term fiscal sustainability depend on supporting older people’s contributions.
The report by ILC-UK, the specialist think tank on the impact of longevity in society, highlights that 79% of Japanese people aged 50-64 were in employment in 2018. And if trends continue, by 2035, 47% of the workforce could be aged 50+.
Older people are also dominating consumer spending in Japan. Indeed, more than 3 in 5 Yen in the Japanese economy were spent by older households in 2015.
And older Japanese people undertake important unpaid contributions, such as volunteering and caring. In Japan, people aged 65 and over spend (on average) 12 more hours a year volunteering and caring for loved ones in their household than people at other ages. And these non-market contributions, if renumerated, would equate to 1% of GDP – just under a third of what Japan spends on education.
However, the report by ILC-UK, which is part of an international consortium of organisations on longevity, including ILC-Japan, warns that older people’s contributions could be much higher with better support for healthy ageing and longer and changing working lives.
Indeed, comparing countries across the G20, the research finds that in countries that spend more on health, older people work more, spend more and volunteer more. Indeed, increasing preventative health spending by just 0.1 percentage points is associated with a 9% increase in annual spending by people aged 60 and over and ten more hours of volunteering for each person aged 65 or over.
ILC-UK, the UK’s specialist think tank on the impact of longevity on society, calls on the Japanese government to invest more in preventative health interventions such as vaccinations, screenings and management of disease, alongside greater support for older people’s paid and unpaid contributions.
David Sinclair, Chief Executive of ILC-UK, commented:
“Japan has already established several initiatives to respond to its ageing society. Given the speed at which Japan is ageing, there is an opportunity for the government to position itself as a global leader in responding to the impacts of an ageing society.”
“We need to support people to stay healthy throughout their lives, strengthen incentives for older workers, ensure good job and training opportunities and promote better work choices for workers throughout their careers.”
“The COVID-19 pandemic has created an exceptional opportunity for society to further prioritise health and act to support older people. Amidst the devastation it has caused, it has shown us how our economies are linked to health and exposed the dangers of under-investing in prevention. Let’s use this shift in mind-set to commit the funds today that we’ll need to realise a longevity dividend tomorrow.”
Julia Longbottom CMG, British Ambassador to Japan said:
“I am delighted that the British Embassy in Tokyo is hosting this seminar and expert panel discussion today to deepen understanding of the importance of healthy ageing to our economy and society. I look forward to hearing from speakers from ILC, government, academia and medical organisations and their views on the future challenges and opportunities of an ageing society.”
ENDS
Notes
For press queries, please contact Emily Evans at press@ilcuk.org.uk or +44 (0) 208 638 0832.
The Japanese country summary report is available from: https://ilcuk.org.uk/health-equals-wealth-maximising-the-longevity-dividend-in-japan/
To find out more about the launch event at the British Embassy, visit: Health equals wealth – The economic impact of healthy ageing across Asia Pacific – ILCUK
This is part of a global series. To view the full programme page and other country profiles across the G20, visit: Health equals wealth: Maximising the global longevity dividend – ILCUK
This summary report has been produced with financial support from Sanofi.
Over the coming year, ILC-UK will be developing a global Healthy Ageing and Prevention Index to track progress, showcase good practice and hold governments to account on supporting their societies to age more healthily and make the most of the longevity economy.
To find out more about the programme, visit: Delivering prevention in an ageing world – ILCUK
About ILC-UK
The International Longevity Centre UK (ILC) is the UK’s specialist think tank on the impact of longevity on society. The ILC was established in 1997 as one of the founder members of the International Longevity Centre Global Alliance, an international network on longevity. We have unrivalled expertise in demographic change, ageing and longevity. We use this expertise to highlight the impact of ageing on society, working with experts, policymakers and practitioners to provoke conversations and pioneer solutions for a society where everyone can thrive, regardless of age.
About ILC Japan
Following the ideation of the ILC Global Alliance by Dr. Robert Butler, a global authority on gerontology, a group of private companies in Japan endorsed his vision and passionately pursued the establishment of a Japanese center. After three years of preparatory work with the guidance of the Ministry of Health and Welfare (currently Ministry of Health, Labour and Welfare), ILC-Japan was launched in November 1990. Since then, we have been engaged in numerous studies concerning the ethos of productive aging and we have actively sought to share our findings, and educate the public. We aspire to serve as an international resource center and will continue to proactively initiate projects that will contribute to an ideal aging society where all generations will support one another and live happily.