Japan’s Old Age Colony: A Demographic/Fiscal Death Trap

Japan is ageing fast. Its dependency ratio, defined as the ratio of the population aged 65 and above to the population aged 20-64, was 48% in 2015. It is predicted to rise to 80% by the early 2050s and to stay at around 80% during the second half of the century……Expenditures for age-related social insurance programmes – such as pensions, public health care, and long-term care insurance – are projected to rise significantly, far outpacing the projected revenues and insurance premia collected as the size of the working age population continues to shrink rapidly