Editorial | Like Japan, Hong Kong needs bolder vision to meet challenges of greying society
- People in both places are living longer, putting pressure on pension schemes. More flexible labour policies can address at least some of the problems
As the country with the world’s oldest population, Japan should be a trendsetter for retirement policy. About 28 per cent of Japanese are aged 65 or older, a proportion that is more than three times the global average.
Combined, the factors are of concern to analysts, who believe that without far-reaching policy reform, dire economic consequences are bound to occur.
Experts point to the prospects of workforce shortages as retirees outnumber new jobseekers; poorly performing pension schemes that have led to falls in savings rates as assets are liquidated to support retirement; slowdown of economic growth as a result of labour and capital shortages; and the financial challenges of rising public medical and aged care costs.
A comfortable retirement? Not if you’re a Japanese woman
Abe wants parliament to approve the change during its current session to ensure the new retirement age takes effect in April next year. But not all Japanese welcome such a move and nor will it be embraced by all companies.