Population ageing is already well advanced in Japan and will progress further
Later retirement by older people would reduce the decline in Japan's labour force
Japan already has some of the highest participation rates for older people among OECD countries
Impacts of contribution extension and deferred pensionable age on pension replacement rate as of 2058
Many workers become non-regular employees after reaching 60 years old
Most firms have kept retirement age at 60
Seniority wages remain dominant in Japan
Seniority based pay are negatively correlated with retention of older workers
Older workers face large wage declines
The Japanese wage system has gradually shifted from its traditional seniority pay system