Japan’s retirees favour tax-deferred annuities for security

Only 40% were willing to convert assets into guaranteed lifetime income.

Interest in health and retirement insurance is growing in Japan, driven by concerns over ageing, illness, and income security, according to a 2024 survey by the Society of Actuaries and RGA Reinsurance.

Seventy-three percent of respondents showed interest in annuities with higher payouts for critical illness or disability, while 65% favoured tax-deferred annuities. 

However, only 40% were willing to convert assets into guaranteed lifetime income.

Medical and critical illness insurance are the most widely held products, covering 32% and 22% of respondents. 

Long-term care and dementia insurance remain less common despite high concern levels.

On average, respondents were willing to spend $131.98 (JPY19,440) per month on insurance, indicating strong but still untapped demand for retirement protection products.