With nearly 29% of Japan's population aged 65 or older, the need for robust retirement planning and financial products is more critical than ever according to a new comprehensive study on retirement readiness in Japan conducted by global life reinsurer RGA and actuarial organisation SOA Research Institute.
The 32-page report Retirement Readiness in Japan: Financial Security and Risk Perceptions released in June 2025 reveals that the Japanese people have limited retirement planning and knowledge on financial products.
A press release issued by RGA said the study provides critical insights into the evolving retirement landscape in Japan, offering valuable information for insurers, policymakers, and financial advisors.
The study is based on a joint consumer survey conducted by the SOA and RGA among 750 Japanese respondents across three age groups (prime age workers: ages 30-45, pre-retirees: ages 46-59, and retirees: ages 60-75) in November 2024.
The study reveals a maturing retirement system facing significant demographic pressures. With nearly 29% of Japan’s population aged 65 or older, the need for robust retirement planning and financial products is more critical than ever.
Some of the major findings of the survey include:
- Financial literacy: 17% of respondents reported no knowledge at all about investment and financial products, and 42% indicated ‘not very knowledgeable.’
- Generational divide in planning: Retirees show significantly higher engagement in retirement planning compared to younger cohorts, with 37% of prime age workers and 45% of pre-retirees having not done any retirement planning.
- Post-retirement concerns about factors outside of individual’s control dominate: 90% of respondents consider tax increase and impact of an ageing society on government support as their top concerns.
- Source of retirement income: Prime age workers and pre-retirees are not confident that their retirement savings are sufficient; 89% of them expect to rely on full- or part-time job earnings as part of their retirement income.
- Preference on financial products with guaranteed or fixed income: Guaranteed income for life (43%) and fixed income throughout retirement (39%) are considered top financial/investment product features for retirement income, indicating preference for risk-averse options.
- Significant interest in annuity products: 73% of respondents expressed interest in annuities with increased payments for critical illness or disability or tax-deferred annuity (65%).
- Improved engagement in retirement planning since 2018: Overall engagement has improved. Willingness to buy lifetime income products increased from 22% in 2018 to 35% in 2024. Respondents who are very involved in managing their retirement savings increased significantly from 21% to 50%.
RGA Japan CEO Hironori Takahashi said, “This research underscores the urgent need for innovative retirement solutions and reveals significant opportunities for the insurance industry to develop tailored solutions that address the evolving needs and enhance financial security for Japan’s rapidly aging population of retirees.”
SOA Research Institute MD R Dale Hall said, “Our study reveals that while 59% of retirees review their social pension benefits, only 23% of pre-retirees and 17% of prime age workers do so. Also, 37% of prime age workers and 45% of pre-retirees haven’t done any retirement planning at all.