Share of primary insured people requiring long-term care Japan 2012-2021

As of March 2021, around 18.7 percent of primary insured people in the long-term care insurance (LTCI) system in Japan required nursing care or support for daily activities. Primary insured people under the system are those aged 65 years and older. In 2020, there were approximately 35.8 million people in this category in the nation. This indicates that about 81 percent of those people were healthy and not bedridden.

The Long-term Care Insurance System

The LTCI system in Japan was established in 2000 to provide benefits and services for people who require long-term care. Japanese central and prefectural governments, as well as municipalities, cover half of the system’s cost. As the other half of the budget is financed by insurance premiums, all people in Japan aged 40 and older must join the LTCI system and contribute to the premium.

Healthy seniors

Japan’s population is aging and shrinking at the same time. Therefore, healthy and not bedridden people aged 65 years and older are gaining importance in its society. The age cohort is anticipated to, for example, offset the labor shortage in the nation. Since households with senior members generally have higher net savings than households with younger members, the Japanese economy will depend increasingly more on the spending power of the senior citizens.