Japan’s ageing population faces challenges in healthcare, economy, and social isolation, offering lessons for Australia’s proactive ageing policies.
As the global population ages, the challenges of providing adequate care and support for the elderly become increasingly pressing. Japan has long been a demographic trailblazer in this regard, with a rapidly ageing population and a host of challenges in caring for their senior citizens.
In this article, we will explore the recent demographics in Japan, the problems it faces in taking care of its elderly population, and how Australia can learn from these issues to avoid a similar fate.
Japan’s Ageing Population
Japan is renowned for its ageing population, often referred to as a “super-ageing society.” Recent data provided by Tokyo’s Internal Affairs and Communications Ministry highlights the following trends:
Ageing Population
Japan currently boasts one of the world’s most extended life expectancies, with a considerable proportion of its population being seniors aged 65 and older, and a notion exists that in Japan, ages 65-75 are labelled as the golden health decade. Data released for 2023 by the Ministry’s Statistics Bureau revealed that in terms of life expectancies, Japanese men were estimated to live as far as 81.5 years old and women at 87.6 years.
Declining Birthrate
Japan’s birthrate has been steadily declining – at 1.34 births per woman as of 2020 – leading to a significant demographic imbalance. Tokyo’s Health and Welfare Ministry reported that only 758,631 babies were born in 2023, a 5.1 per cent drop from 2022, making it an eighth-straight year of lower births and the lowest since the tallying began in 1899.
The ageing population is growing faster than the younger workforce; current seniors manpower data from the National Institute of Population and Social Security Research is estimated at 13.6 per cent of Japan’s overall labour force – but rapid ageing may increase that number to 34.8 per cent within the next 17 years. Japanese Prime Minister Fumio Kishida expressed reservations in early 2023 that because of a lower birthrate, the country’s society will gradually reduce to function. Even with his concerns, the younger working population has all but avoided government incentives to date and build a family; some of these measures include dating etiquette seminars, parents of single children becoming matchmakers, and the establishment of a new Children and Families Agency.
Longevity Challenges
While the increasing life expectancy is commendable, it has also brought a rise in age-related health issues, increasing the demand for healthcare services.
Economic Implications
An ageing population results in economic challenges, as more retirees rely on pensions and social services, putting pressure on the working-age population to support them.
Taking Care of the Ageing Population in Japan
Japan’s ageing population has led to a series of challenges that the country has been grappling with.
Elderly Care Infrastructure
The demand for nursing homes and long-term care facilities has surged, overwhelming the existing infrastructure. Waitlists for these services can be extensive, leaving many without the care they need. While there are an estimated 10,600 aged-care facilities in the country, rising operational costs, however, lead to a looming possibility that at least 27 per cent of nursing homes and aged-care centres in Japan might shut down or declare bankruptcy within a few years.
Healthcare Burden
The rising number of elderly individuals with age-related health conditions has strained the healthcare system, causing concerns about the availability and affordability of medical services. In recent years, Japan has made significant strides to attract more licenced healthcare practitioners from overseas to work in its healthcare sector to help relieve work burdens, if not for systemic local biases against gaijin (foreigners). Writing for Nikkei Asia in June 2023, Dynamic Strategies Asia president Andrew Saidel said Japan’s healthcare sector stood the risk of being 320,000 nursing staff short by 2025
Economic Strain
The combination of a shrinking workforce and a growing population of retirees has led to economic strain, with the working-age population carrying a significant burden to support seniors.
Social Isolation
A substantial proportion of Japan’s elderly population faces social isolation, as traditional family structures and community support systems erode. This isolation has detrimental effects on their mental and emotional well-being. This is especially true in rural towns, where many younger residents move away and resettle in the city, with mostly older people ageing in place.
An August 2023 editorial by Japanese broadsheet Mainichi Shimbun covered data stating that around half of all households in the country had more than one person over 65 years old – and over-65s are the sole occupants in at least 30 per cent of overall households.
How Australia Can Learn from Japan
Australia, like Japan, faces an ageing population. However, by learning from Japan’s experiences, it can take measures to prevent a similar scenario:
Proactive Policy Planning
Australia should proactively plan for the ageing population. This includes ensuring that healthcare services and long-term care facilities are adequately prepared to meet the needs of seniors.
Promote Ageing in Place
Encourage ageing in place, allowing seniors to stay in their homes with support services rather than moving into costly care facilities. This approach can be more cost-effective and enhance seniors’ quality of life.
Invest in Healthcare
Increasing investment in healthcare infrastructure and training more healthcare professionals will be crucial to meet the healthcare demands of a growing senior population.
Promote Healthy Ageing
Encourage healthy lifestyles and prevention measures to reduce the incidence of age-related illnesses. This can ease the burden on the healthcare system.
Retirement Planning
Encourage sound financial planning and saving for retirement. Promote schemes that ease the transition from the workforce to retirement, such as phased retirement.
Social Connection
Foster community-based programmes that combat social isolation among seniors, promoting their mental and emotional well-being.
Strengthen the Workforce
Encourage workforce participation among seniors who wish to continue working, creating a more balanced ratio of retirees to workers.
International Collaboration
Collaborate with other countries, including Japan, to share experiences, best practices, and innovative solutions for caring for the elderly.
ANU professor Dr. Adam Broinowski also discussed the above arguments in a position paper he presented to Parliament in August 2023. He took note of Japan’s status as a country with a “super-aged society” and how its economy may be affected by an ageing population, especially in light of increased defence spending and desire to increase manufacturing capacity as an alternative major trading partner for China.
Conclusion
The challenges that Japan faces in caring for its ageing population serve as a valuable lesson for Australia. By focusing on healthcare, economic sustainability, and social well-being, Australia can create a better future for its seniors while also alleviating the strain on the working-age population. Planning and action today can lead to a brighter tomorrow for both seniors and the entire nation.
The A.S.A.G. Reverse Mortgage
The ageing population in Japan can guide Australians while preparing for their own retirement, in some cases with aid of the A.S.A.G. Reverse Mortgage. A Retirement Planning solution, in particular, may aid seniors with their lifestyle options, especially if they intend to age in place.
Please call the A.S.A.G. at 1300 002 724 or email to info@asagfirst.com.au to discuss your finance options.
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DISCLAIMER: This article is for informational purposes only and does not constitute official advice. A.S.A.G. is not affiliated with any mentioned brands or companies.