Households headed by people 65 and older accounted for 39% of all personal consumption in Japan last year, nearly twice their share 20 years earlier.

Pensioners' share of spending hits nearly 40% of total in Japan

Seniors hold key to country's drive to escape deflation

YOHEI HIROSE, Nikkei staff writer

August 20, 2023 06:00 JST

TOKYO -- As Japan looks to stimulate consumer spending through pay hikes, a glaring problem has emerged: Pay increases do not benefit pensioners much. Given Japan's high proportion of retirees, encouraging older people to spend will be crucial if Japan is to escape its deflationary doldrums.