Economics & Finance / Finance & Investment / Pensions & Retirement

Japan’s Elderly Are Working Again—Here’s Why (It’s Not Health)

Takashi Oshio, Emiko Usui, Satoshi Shimizutani

For decades, Japan’s elderly were retiring earlier and earlier. Then, in the 2000s, everything flipped: their labor force participation started climbing back up. Most people assume it’s because they’re healthier or living longer. But the real driver? A brutal series of pension reforms that raised the retirement age and slashed benefits. This video breaks down how Japan’s social security system, not health improvements, forced a generation back to work—and what that means for the rest of the world. Based on a 2018 NBER paper by Takashi Oshio, Emiko Usui, and Satoshi Shimizutani.