25 March 2015

Japan: Lessons from a hyperaging society

by Misato Adachi, Ryo Ishida, and Genki Oka

Japan is the world’s oldest country—25 percent of its people are aged 65 or over. By 2040, that ratio is estimated to rise to the historically unprecedented level of 36 percent. The population of Japan nearly tripled in the 20th century, peaking at 128 million in 2010. But with a falling birth rate, one of the world’s longest life expectancies, and close to zero net immigration, the country is headed for not only a uniquely high ratio of seniors but also a sharp downturn in its total population (Exhibit 1). All that will put increasing strains on Japan’s ability to manage its rising debt and social-security obligations and will create growing shortages of skills.

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