Big Take Weekend Listen: Japan’s $2 Trillion ‘Dementia Money’ Cliff
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Jan 25, 2026 A deep look at Japan’s growing pool of retirement assets tied to seniors with cognitive decline. Stories of frozen accounts reveal family struggles and access trade-offs. Discussion of scams, economic drag from dormant funds, and corporate tactics to manage elderly shareholders. Exploration of legal reforms, family support accounts, and cultural taboos around dementia.
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Rural Mother-Daughter Financial Wake-Up
- Chizuko, a 76-year-old retiree in rural Fukui, discussed finances with her daughter Mai after learning of a frozen account in the family.
- Their frank talk led them to set up a family support account to let Mai manage finances if needed.
Elderly Hold Massive Financial Clout
- Japanese households over 65 control more than half of $14 trillion in cash and securities, concentrating financial power in the elderly.
- Sumitomo Mitsui Trust Bank estimates about $2 trillion is held by people with dementia or mild cognitive impairment.
Cognitive Decline Amplifies Financial Risks
- Cognitive decline raises risks like ill-advised donations, missed bills, and fraud that target seniors.
- In 2024 over 60% of financial scams in Japan targeted people over 65, amplifying vulnerability.