Preface to the special issue on “Demographic change and wellbeing in Japan and Asian economies”

Japan and other Asian economies are witnessing a rapid and accelerating increase in their aging populations. Increased longevity with significant improvements in the physical health of older individuals over recent decades is a commendable result of successful socioeconomic development in Asia. For instance, the burden of disease for those aged 60 and above, measured by disability-adjusted life years, has markedly declined in developing Asia, from 108,415 per 100,000 people in 2000 to 86,083 in 2019. This shift presents a potential “silver dividend,” with the untapped work capacity of older individuals having the potential to substantially boost the gross domestic product in many countries within the region (Kikkawa et al., 2024). However, Asia is also confronted with new challenges—the proportion of people aged 60 and older is expected to increase from 12 in 2018 to 25% within the next three decades, exceeding the projected global average of 22% by 2050 (ADB, 2024). The rapid pace of population aging in developing Asia is particularly noteworthy as it occurs at lower income levels compared to advanced economies that faced similar changes. Countries like Korea and China have seen demographic shifts outpace earlier projections due to sharply declining birth rates. A key concern across the region is the risk that these societies might age before they accumulate sufficient resources to support their older populations adequately. Many countries, especially those lacking effective old-age insurance through market or nonmarket mechanisms, need policies that promote active aging while safeguarding the well-being of their older individuals.