The choice to keep working in Japan appears to be driven by positive reasons.
Japan has the longest life expectancy in the world. (1) The life choices being made are of relevance worldwide. The Japanese are increasingly choosing work, and a government survey reveals why. (2)
Trends in Employment Rate by Age Group (%)
| 2010 | 2020 | |||
| 60-64 | 57.1 | 71.0 | ||
| 65-69 | 36.4 | 49.6 | ||
| 70-74 | 22.0 | 32.5 | ||
| 75+ | 8.3 | 10.4 | ||
Source: Cabinet Office, 2021 Report, Conceptasia, July 2021
Employment rates for those between 60 and 75 have been rising around 1% per year for the last decade. One third of 70–74-year-old Japanese are still in employment.
The Japanese government is considering changing their definition of “elderly” from 65+ to 75+.
For those working with an income, the government’s survey had six categories as to why:
A: Because I want income. B: Because work itself is interesting and I can utilize my knowledge and abilities. C: Because I make friends through my work. D: Because working is good for my health and prevents aging. E: Others. F: Unknown/No answer.
Reason for Working by Age, Reason definitions above (%)
| Reason | 60-64 | 65-69 | 70-74 | 75+ |
| A | 65.1 | 48.2 | 39.8 | 29.9 |
| B | 21.1 | 22.7 | 25.3 | 32.8 |
| C | 0 | 5.5 | 4.8 | 1.5 |
| D | 10.1 | 19.1 | 27.7 | 26.9 |
| E | 3.7 | 3.6 | 2.4 | 6.0 |
| F | 0 | 0.9 | 0 | 3.0 |
Source: Cabinet Office, 2020 Report, Conceptasia, July 2021
The importance of income declines with age group (row A in the table above).
For the third of 70-74 year old Japanese still working, for interest (B) and health (D) reasons make up 53% of the replies.
References
- Please see chapter two of our book: J-Wellness 2020, The economics, career options, and investment opportunities, published August 2020.
- Annual Report on the Aging Society, released by Japan’s Cabinet Office. English language summary reports: https://www8.cao.go.jp/kourei/english/annualreport/index-wh.html