The (Dis)saving Behavior of the Aged in Japan

ISER Discussion Paper No. 763

26 Pages Posted: 24 Dec 2009

See all articles by Charles Yuji Horioka

Charles Yuji Horioka

Kobe University; National Bureau of Economic Research; Asian Growth Research Institute; Osaka University

Institute of Social and Economic Research

Osaka University - Institute of Social and Economic Research (ISER)

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Date Written: December 24, 2009

Abstract

In this paper, I survey the previous literature on the saving behavior of the aged in Japan and then present some survey data on the saving behavior of the aged in Japan that became available recently. To summarize the main findings of this paper, virtually all previous studies as well as the newly available data I analyze find that the retired aged dissave and that even the working aged dissave, at least at advanced ages. Moreover, there has been a sharp increase in the dissaving of the retired aged since 2000, with the increase being due primarily to reductions in social security benefits, increases in consumption expenditures, and increases in taxes and social insurance premiums. These findings are consistent with the life-cycle model and suggest that this model is highly applicable (and becoming increasingly applicable over time) in the case of Japan.

Keywords: Age structure of the population, aged, aging, consumption, dissaving, elderly, households, Japan, life-cycle model, life-cycle hypothesis, retirement, saving, saving rate

JEL Classification: D12, D91, E21

Suggested Citation

Horioka, Charles Yuji and Economic Research, Institute of Social and, The (Dis)saving Behavior of the Aged in Japan (December 24, 2009). ISER Discussion Paper No. 763, Available at SSRN: https://ssrn.com/abstract=1526422 or http://dx.doi.org/10.2139/ssrn.1526422

Charles Yuji Horioka (Contact Author)

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Osaka University ( email )

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Institute of Social and Economic Research

Osaka University - Institute of Social and Economic Research (ISER)

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Japan
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