Big Take Asia Japan’s $2 Trillion ‘Dementia Money’ Cliff
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Jan 20, 2026 Bloomberg reporter Alice French highlights Japan's staggering $2 trillion 'dementia money' problem, where cognitive decline among seniors may jeopardize their financial assets. She discusses the alarming rise of frozen accounts and the profound impact on families trying to access funds. Alice also delves into the ripple effects on the economy, corporate governance, and how cultural stigmas complicate solutions. A pressing call for coherent strategies emerges as financial firms scramble to address the chaotic landscape of aging investors.
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Frozen Account Shock Spurs Planning
- Chizuko, a 76-year-old retiree, and her daughter Mai discussed frozen accounts after a relative's funds were inaccessible following death.
- That story pushed Mai to plan for her mother's finances and seek safeguards like family support accounts.
Elderly Hold Most Liquid Wealth
- People over 65 control more than half of Japan's $14 trillion in household cash and securities.
- Sumitomo Mitsui Trust Bank estimates about $2 trillion is held by those with dementia or mild cognitive impairment.
Dementia Money Drives Broad Financial Risks
- Dementia money includes diagnosed dementia and mild cognitive impairment before diagnosis.
- Cognitive decline raises risks like ill-advised donations, missed bills, and targeted scams affecting economic activity.