Ageing Population: Japan

Statistics: 

• 1/5 of the population is aged over 65, this is set to be 1/3 by 2023
• fertility rate = 1.25
• In 1975 the birth rate was 19 and the death rate was 9.7
• In 2006 the birth rate was 6.3 and the death rate was 9.2
• natural increase = 0.5% 
• pro-natal (paternity leave) 

Advantages: 

More money is spent locally, as elderly tend to buy more in the local community, thus money is put back into the economy. The 'silver business' boom - businesses that are targeted at the elderly demographic boom (e.g. cruises). 

Disadvantages: 

Health costs rise, causing taxation to be higher to handle the higher numbers of people using health services. Some services, like schools and possibly transport services, will be underused and have to close - leaving some people unemployed. Government funded pensions may have to shrink in order to cover everybody, leaving people with less money to spend. 

Why? 

Japan has undergone years of rapid economic development, and the culture shifted quickly. More focus has been put on having a job and good income, so people focus less on having a family. Also, children are seen as economic burdens, rather than assets and these factors lead to lower fertility rates. People are now living considerably longer than before, due to an improvement in the quality of healthcare and the incredibly healthy diet that many adopt in Japan.