The innovative companies diffusing Japan's demographic time bomb

Which companies are bridging the generation gap?

Japan's success or failure in mitigating the effects of an ageing population is important not only to international investors with eyes on the archipelago, but for all developed nations on the demographic decline.

The population is already ageing fast, with a fifth already aged over 70 years old and a third over 60. As Japan's society ages, the older population moves from a net contributor to the economy to a net expense, with higher social and healthcare costs. Coupled with a deflationary investment environment and the prevalence of defined benefit pensions, this has resulted in a funding gap of $11trn. Experts estimate this could increase to $50trn by 2050. The 'icing on the cake' in Japan Given these sobering figures, a reversal of the population decline is a key priority for the gover...