Impact of Population Aging on Household Savings and Portfolio Choice in Japan

33 Pages Posted: 31 Jan 2017

See all articles by Tokuo Iwaisako

Tokuo Iwaisako

Hitotsubashi University - Institute of Economic Research

Arito Ono

Chuo University

Amane Saito

Mizuho Research Institute Ltd.

Hidenobu Tokuda

Mizuho Research Institute Ltd.

Date Written: November 30, 2016

Abstract

We examine whether Japanese households have begun to dissave and reduce their holdings of risky assets because of population aging over the period 2000–14. While there is little doubt that household savings have decreased, the true trend without a negative income shock in the early 2000s would have been declining more smoothly and moderately. The average share of risky assets in household portfolios increases with age and barely decreases even for retired households. The main sources of increasing household wealth are the increasing wealth of the elderly and the increasing proportion of the wealthier elderly population.

Keywords: population aging, household saving, household portfolios

JEL Classification: E21, G11, J11

Suggested Citation

Iwaisako, Tokuo and Ono, Arito and Saito, Amane and Tokuda, Hidenobu, Impact of Population Aging on Household Savings and Portfolio Choice in Japan (November 30, 2016). Available at SSRN: https://ssrn.com/abstract=2908756 or http://dx.doi.org/10.2139/ssrn.2908756

Tokuo Iwaisako (Contact Author)

Hitotsubashi University - Institute of Economic Research ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8306
Japan

Arito Ono

Chuo University ( email )

2nd floor Blg 4 Tampa Campus
742-1 Higashinakano, Hachioji
Tokyo 192-03
Japan

HOME PAGE: http://https://sites.google.com/site/aritoono/Home

Amane Saito

Mizuho Research Institute Ltd. ( email )

1-2-1 Uchisaiwaicho
Chiyoda-ku
Tokyo, 100-0011
Japan

Hidenobu Tokuda

Mizuho Research Institute Ltd. ( email )

1-2-1 Uchisaiwaicho
Chiyoda-ku
Tokyo, 100-0011
Japan

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