Abstract
The unprecedented aging of Japan’s population presents costs and opportunities for its future as a society and as a major economic power. Japan’s seniors already control the largest portion of the nation’s wealth, but in the very near future they will also consume the lion’s share of the social expense for care and living as they age and their proportion in the total population increases. In this chapter we examine two areas which promise commercial opportunities because of such a vast socio-demographic change linked to a huge pool of liquid assets. Those areas are, firstly, catering to the financial needs of the country’s senior citizens and, secondly, responding to their particular preferences and requirements for housing. In Japan’s generally sluggish market for housing and financial services, the “silver market” provides one of the richest segments available, but successfully offering such services to this population requires skill, sensitivity, and an understanding of the evolving consumer mindset in Japan. In addition, the added impact of the recession of 2008 will make this target market even more difficult to persuade to part with their diminished personal assets, but it also opens opportunities for financial service providers whose offerings best suit the anxieties and fears of these aging investors.
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Notes
- 1.
Dai-ichi Life Research Institute estimates that assets of Japanese baby boomers total ¥130 trillion, which is equivalent to 10% of all personal financial holdings in Japan. In addition to the amount of assets that they hold, between now and 2009 companies will have paid out about ¥50 trillion in retirement severance as workers reach age 60. According to a Dentsu survey, baby boomers are expected to spend about ¥11 trillion on travel after retirement, of which 90% would be for travel outside of Japan [18].
- 2.
Financial assets held by Japanese households rose to a record high of ¥1.56 quadrillion as of 30 June, 2007, with cash and deposits constituting 50% of that amount, a considerably higher percentage than in other advanced economies [7].
- 3.
Sinpatanasakul [17] describes in detail why Panama is the number one destination for Americans seeking a low cost of living country to retire. The visa program offered by Panama, known as the “pensionado” program, provides retirees with discounts that have no serious competition anywhere else. As long as retirees are able to document a minimum monthly pension of US$500 (in addition to US$100 for each dependent), they are eligible for the pensionado visa offering the following benefits:
Import duty exemption for household goods
Tax exemption to import a new car every 2 years
50% off entertainment anywhere in the country (movies, theaters, concerts, sporting events)
30% off in-country bus, boat, and train fares
25% off in-country airline tickets
50% off hotel stays Monday through Thursday
30% off hotels stays Friday through Sunday
25% off restaurant bills
15% off at fast-food restaurants
15% off hospital bills (if no insurance applies)
10% off prescription medicines
20% off medical consultations
15% off dental and eye exams
20% off professional and technical services
50% reduction in closing costs for home loans
25% discounts on utility bills
15% off loans made in your name
1% less on home mortgages for homes used for personal residence
20-year property tax exemptions on all newly constructed homes
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Grossberg, K.A. (2011). The Golden Opportunity of Silver Marketing: The Case of Housing and Financial Services. In: Kohlbacher, F., Herstatt, C. (eds) The Silver Market Phenomenon. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-14338-0_29
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DOI: https://doi.org/10.1007/978-3-642-14338-0_29
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