What’s Happening Day
If Japan's Today is Korea's Tomorrow
There was a time when Japan was considered 30 years ahead of Korea.
With the rapid pace of aging, it no longer feels strange to say Japan is just 10 or even 5 years ahead.
Currently in Japan, concerns about finding a place to spend one's later years are growing.
Recently, Japan has seen a variety of scenarios regarding retirement living. Some people are considering leaving the communities they've lived in for decades to move elsewhere, while others are securing their ideal retirement residence well in advance while still healthy.
So, what is actually happening in Japan right now?
Tokyo Nursing Home
5-Year Stay Costs 241.52 Million Won
Median Entrance Fee86.71 million won
Median Monthly Fee2.58 million won
Total amount needed for 5 years241.52 million won
The cost of preparing for retirement in Tokyo has increased significantly over the past 8 years. Both the entrance fees and monthly costs have risen, so the total 5-year cost is now roughly 44 million won higher. The main factor is inflation. With rising land prices and building material costs in Tokyo, the entrance fees for new facilities have surged, and the combined increase in utility costs for electricity and gas, as well as personnel expenses, has driven up nursing care fees overall.
Elderly Consider Leaving Tokyo
Due to Cost Burden
Tokyo10.01 million yen
Saitama3.3 million yen
Entrance fee is about one-third
In the first half of this year, only 60% of inquiries about admissions to nursing homes and senior communities from elderly residents of Tokyo were for options within Tokyo itself. The remaining 40% were in neighboring areas such as Kanagawa, Chiba, and Saitama.
Due to the rising cost burden, more seniors are looking for more affordable options outside Tokyo, rather than insisting on staying in the city where they've lived their whole lives.
On the Other Hand, 2 Billion Won Senior Towns
Are "Virtually Full"
Maximum Entrance Fee for Top-Class Senior Town
About 2 billion won
24-hour nursing careOpen-air bathMovie theaterGolf facilities
Occupancy rate
96.5%Some secure their desired room in advance while still healthy
There are more than 20 high-end senior towns in Japan where the entrance fee exceeds 100 million yen. The most expensive is "Trust Grace Mikage" in Kobe, Hyogo Prefecture, where the entrance fee alone can be as much as approximately 2 billion won.
Despite the steep price, the occupancy rate is at 96.5%, making them virtually full. In fact, some people are even reserving their preferred rooms well in advance while they are still healthy.
What's Hidden Behind the Glamorous 2 Billion Won
What Deserves More Attention Is
The Cost of an Ordinary Retirement
The reality that 2 billion won senior towns are almost fully occupied starkly highlights the gap in retirement quality. However, beyond the fact that the wealthy can choose better facilities, there is a more immediate reality to consider: Even for an average level facility in Tokyo, you need about 241.52 million won just for five years.
There was once a heated debate in Japan about the "20 million yen retirement problem"—the idea that about 20 million yen, or roughly 173 million won, was needed for retirement. But now, even just several years in retirement can cost more than that. Given the rapid pace of aging in Korea as well, these numbers are no longer just someone else's issue.