The ageing of human populations is a common feature of some developed economies but is particularly acute in Japan.

Some of Japan’s largest financial institutions have formed a team to drive plans to create an institute studying ageing, a major issue in the Asian country where around more than a quarter of its population are retirees.

The project to establish the institute next year brings together Keio University, Nomura Holdings and Mitsubishi UFJ Trust and Banking Corporation. Their proposed financial gerontology institute will work to raise awareness about the financial issues associated with ageing and build ideas on how to serve older adults.

“Japan has a low birth rate, a fast-ageing population and high life expectancy. Helping clients grow and properly manage their financial assets is therefore critical to ensuring that they live comfortably in their post-retirement years. An important aspect of this is understanding the physical and cognitive changes that come with ageing,” the organisations said.

While the issue is common to many countries, it is particularly severe in Japan, with organisations such as the World Bank, World Economic Forum and Japan Ministry of Health drawing attention to the subject. In 2014, 26 per cent of Japanese citizens were over the age of 65. This number is expected to increase, reaching 38.8 per cent by 2050, according to the University of Chicago. 

The “greying” of populations in developed countries is driven by forces such as improved medical treatments and living standards, as well declining birth-rates as some adults choose to defer having children until later in life. Japan’s problems in this area are particularly acute because of its strict immigration controls. Ageing has arguably also contributed to Japan’s prowess in developing robots to handle certain routine tasks.

An ageing population - and the shifting demographic profile of some nations - raises questions around inter-generational wealth transfer. Childless adults face particular wealth and inheritance decisions. In China, this is problematic for that part of the population affected by its "one-child" policy, only recently relaxed amid concerns about its impact. Another consideration is that ageing populations face more problems with cognitive decline, from Alzheimer's, for example. Some jurisdictions continue to wrestle with how advisors can identify early signs of a problem and ensure that trustworthy persons can act on a sufferer's behalf. 

The institute will be supported by Professor Kohei Komamura, faculty of economics and director of Research Center for Financial Gerontology, Keio University, and Professor Masaru Mimura from the School of Medicine, and other leaders in the field.