[Baking Typewriter] Long-Term Care Insurance, Dementia Protection Trusts, and Funeral Businesses... Japan's Solutions to Super-Aging Society

Threefold Challenge of Health, Money, and Loneliness Considered Over Decades
Focus Shifts from 'Cost' to 'Preserving Human Dignity'
Strengthening Social Responsibility Over Family Sacrifice
Measures in Place to Prevent Bankruptcy in Old Age

The Japanese film "Plan 75," which was released locally in 2022, depicts a near-future Japan facing the risk of social and economic collapse due to a rapidly aging population. The government's solution in the film is not only bizarre but also chilling. The government policy, also called "Plan 75," allows seniors to choose euthanasia once they turn 75, with the state actively supporting this choice. The government promotes the positive impact of seniors' decisions through various campaigns. To ensure that seniors who have chosen euthanasia do not change their minds, a call center checks in with them daily to confirm their intentions. Some viewers find the film particularly resonant because they believe, "If it's Japan, they might actually do something like this." There is a perception-or perhaps a prejudice-that Japan's unique culture, which emphasizes not causing trouble for others and demands individual sacrifice for the group, could give rise to such extreme policies if it gains enough influence.

In reality, Japan's aging crisis is deepening by the day. The so-called "Dankai" generation, the baby boomers born between 1947 and 1949, all turned 75 or older last year. Moreover, 29% of Japan's population of 120 million is aged 65 or older. However, there is a twist. The real-life "Plan 75" is heading in the opposite direction from the film. To prevent a dystopia where the lives of seniors are calculated solely in terms of cost and efficiency, Japan has been preparing steadily for decades.

Nami Sun, a Japan analyst at Daishin Securities' Long-Term Strategy Research Department, explores these efforts in her book, "Anxiety About Old Age: Finding Answers in Japan," using various cases and statistics. The title "Anxiety About Old Age" refers to the anxieties of both individuals and the nation as a whole. The book dissects the three main pillars of anxiety in old age: health, money, and loneliness. Among these, the most significant shift in Japan has been in its approach to health-related anxiety. Japan has redefined elderly health not as "how long you live," but as "the right to live with dignity." The "period of care," which arises from the ten-year gap between life expectancy and healthy life expectancy, is no longer considered a burden that individuals and families must bear alone. This concern led to the introduction of long-term care insurance in 2000, moving care from a family duty to a social responsibility.

To address financial anxiety in old age, Japan has acknowledged the limitations of its pension system and has positioned seniors as active participants in the workforce through Silver Human Resource Centers and senior-friendly jobs. At the same time, the country has developed trust services and asset management platforms to protect seniors' assets from dementia and fraud. The essence of the elderly economy-"not losing money is more important than earning it"-has been incorporated into these systems. Efforts are also being made to shift seniors away from a savings-focused investment approach through financial literacy education. The book's latter chapters discuss the "Shukatsu" business, which treats death not as a taboo but as a part of life, industrializing services related to funerals, wills, and organizing personal relationships. This is a practical, business-oriented solution to the challenge of "not leaving a burden for those left behind."

Of course, Japan's experience offers only hints for finding answers and is not a universal solution. Unique aspects of Korean society-such as apartment culture, urban concentration, and perspectives on life-mean that directly transplanting the Japanese model could lead to completely different side effects. The author also introduces ideas for Korean-style senior businesses at the end of the book, including "group purchases of healthy meal boxes" and "customized home remodeling for seniors," among others worth considering.

Anxiety About Old Age: Finding Answers in Japan | Written by Nami Sun | Maeil Business Newspaper | 368 pages | 21,000 KRW