High Dependent Population Case Study: Japan

Question 1

Reasons for ageing population

Answer 1

Increasing elderly population and shrinking younger generation
More retiring people and less working people

Question 2

Effects

Answer 2

Less tax to collect for government
Pension demand means working people have to pay higher taxes
Increased dependency ratio-fertility collapse and ageing has pushed it to 1.8 workers per dependent
Government has raised pension age from 60 to 65 as there are too few workers
Increased cost of healthcare due to demand for medical care
Patient contributions for medical expenses have risen from 10% to 20% as the government are concerned they won’t be able to afford it
Everyone over 40 has to pay £20 a month to care for elderly (care homes, nursing)

Question 3

General points

Answer 3

Japan has the oldest population in the world, where over-65s make up about 24% of the population
30.5 million pensioners
Birth rate below replacement level