Paper  Finance and the Social Security System  2025.03.27

The Current Situation of Digitalisation in Japan

IOTA Papers on February 2025

Taxes and Social Security

Japan faces a critical demographic challenge in sustaining its socioeconomic infrastructure amidst unprecedented population decline and accelerated aging.

Japan is experiencing an aging society ahead of other countries. Figure 1 illustrates the global demographic aging trends, providing a comprehensive comparative analysis of international population aging patterns. Japan's ratio of elderly people was 20.2% in 2005, and since then, it has been the country with the highest aging rate in the world. It is estimated that this rate will continue increasing, reaching 28.6% in 2020, 30.8% in 2030, and 37.9% in 2060.

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