IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v18y2026i4p27.html

Socio-Demographic Factors Influencing Retirement Savings in Japan and the Impact of Digital Financial Inclusion

Author

Listed:
  • Jared Martin U. Desello

Abstract

This paper attempts to model the socio-demographic factors of saving for old age in Japan and determine the impact of digital financial inclusion using demand-side financial inclusion survey data from the Global Findex Database. Weighted probit models were constructed to analyze the responses of over 1,000 Japanese adults and derive each factor’s average marginal effect. The results showed that age is a dominant factor in determining savings for old age, particularly those belonging in the 36-45 year old group who are 43% more likely to save for old age against the reference group. Respondents who use digital financial platforms have a 4% higher likelihood of saving for retirement than those who do not. On the other hand, when both saving for old age and, at the same time, transacting via digital means was modeled, older age groups appear less likely to engage in the said behavior. This may imply the limited reach of these digital platforms, or lower digital literacy among this demographic. In light of Japan’s rapidly aging population, strengthening financial and digital literacy among younger generations, while also expanding access and training for older adults, is essential to promote responsible saving behavior and ensure long-term financial resilience.

Suggested Citation

  • Jared Martin U. Desello, 2026. "Socio-Demographic Factors Influencing Retirement Savings in Japan and the Impact of Digital Financial Inclusion," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 18(4), pages 1-27, April.
    • Handle: RePEc:ibn:ijefaa:v:18:y:2026:i:4:p:27
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/52946/57731
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/52946
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Charles Yuji HORIOKA & Yoko NIIMI, 2017. "An Empirical Analysis of the Saving Behavior of Elderly Households in Japan," Economic Analysis, Economic and Social Research Institute (ESRI), vol. 196, pages 31-46, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Horioka, Charles Yuji, 2020. "Does the Selfish Life-Cycle Model Apply in the Case of Japan?," AGI Working Paper Series 2020-04, Asian Growth Research Institute.
    2. Luigi Ventura & Charles Yuji Horioka, 2020. "The wealth decumulation behavior of the retired elderly in Italy: the importance of bequest motives and precautionary saving," Review of Economics of the Household, Springer, vol. 18(3), pages 575-597, September.
    3. Charles Yuji Horioka & Luigi Ventura, 2024. "Do the Retired Elderly in Europe Decumulate Their Wealth? The Importance of Bequest Motives, Precautionary Saving, Public Pensions, and Homeownership," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 70(1), pages 187-212, March.
    4. Niimi, Yoko & Horioka, Charles Yuji, 2019. "The wealth decumulation behavior of the retired elderly in Japan: The relative importance of precautionary saving and bequest motives," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 52-63.
    5. Agnieszka Zawadzka & Małgorzata Grzywińska‐Rąpca, 2023. "Financial savings structure—Eurozone and Visegrad Group," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 699-717, January.
    6. Charles Yuji Horioka, 2025. "Bequests," ISER Discussion Paper 1288, Institute of Social and Economic Research, The University of Osaka.
    7. Charles Yuji Horioka, 2024. "Household Saving in Japan: The Past, Present, and Future," ISER Discussion Paper 1264r, Institute of Social and Economic Research, The University of Osaka, revised Jan 2026.
    8. Chul Ju Kim (ed.), 2019. "Aging Societies: Policies and Perspectives," ADBI Books, Asian Development Bank Institute, number 9, September.
    9. Charles Yuji Horioka & Emin Gahramanov & Aziz Hayat & Xueli Tang, 2019. "The Impact of Bequest Motives on Retirement Behavior in Japan: A Theoretical and Empirical Analysis," Discussion Paper Series DP2019-26, Research Institute for Economics & Business Administration, Kobe University.
    10. Horioka, Charles Yuji, 2026. "The impact of population aging on the household saving rate: the case of Japan," The Journal of the Economics of Ageing, Elsevier, vol. 34(C).
    11. Horioka, Charles Yuji & Gahramanov, Emin & Hayat, Aziz & Tang, Xueli, 2021. "The impact of bequest motives on labor supply and retirement behavior in Japan: A theoretical and empirical analysis," Journal of the Japanese and International Economies, Elsevier, vol. 62(C).
    12. Horioka, Charles Yuji & Niimi, Yoko, 2019. "Household Debt and Aging in Japan," AGI Working Paper Series 2019-12, Asian Growth Research Institute.
    13. Charles Yuji Horioka, 2021. "Is the selfish life-cycle model more applicable in Japan and, if so, why? A literature survey," Review of Economics of the Household, Springer, vol. 19(1), pages 157-187, March.
    14. Tetsuo Yamamori & Kazuyuki Iwata & Akira Ogawa, 2026. "Effect of the Length of Post-Retirement Life on Saving Behavior: An Experimental Study on the Simple Intertemporal Life-Cycle Problem," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 43(1), pages 1-30, December.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:18:y:2026:i:4:p:27. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.