Currently, our society is undergoing changes driven by low birth rates and an aging population. This transformation poses a greater economic challenge for the generation born in the 1990s, as recent academic warnings suggest that individuals in their 20s and 30s from this era may have to contribute more than 40% of their lifelong earnings in taxes. Let's delve into a thorough analysis and explore financial strategies and countermeasures for preparing for the future.
Additional Burden under Current Systems
Individuals in their 20s and 30s from the 1990s are expected to pay more than 40% of their lifetime income in taxes under the current system. This represents a 20% increase in the additional burden rate under the current system, necessitating proactive financial planning for the future.
Inevitable Burden of Welfare Systems
Welfare systems are considered a significant factor contributing to fiscal risks. Additional funding is required for public pensions, basic pensions, health insurance, long-term care benefits, and basic livelihood security benefits. This predicts a further increase in tax burdens in the future, emphasizing the need for financial strategies considering these factors.
Future Labor Shortage and Industry Outlook
Between 2021 and 2031, significant changes in population and industry are anticipated, indicating a substantial labor shortage in various industries. Labor shortages are expected in social welfare services, food and beverage services, specialized construction, land transportation and pipeline transportation, and retail, necessitating consideration of industry forecasts.
Healthcare Challenges and Responses
With an increase in retiring doctors and an aging population leading to rising medical demand, a shortage of doctors is expected. In particular, a shortage of surgeons is predicted to increase from 1,329 in 2023 to 6,962 in 2048. To address challenges in the healthcare sector, there is a need for relaxing entry regulations and removing obstacles to new industry formation.
Corporate Growth and Financial Strategies
To foster corporate growth, it is essential to ease related entry regulations and remove obstacles to the formation of new industries. Encouraging the emergence of innovative startups and promoting convergence businesses can open up new markets, contributing to job creation and economic revitalization.
Improvement of Financial Plans and Diversification of Investments
Individuals born in the 1990s need to enhance their lifelong financial plans and maintain stable financial conditions through diversified investments. Considering aging and labor shortages, it is crucial to explore various financial products such as health insurance, pensions, and investments to construct a well-balanced portfolio.
Emphasis on Education and Skill Development
Education and skill development related to future industries and professions are crucial tasks for individuals born in the 1990s. To adapt to changes in industries and become adaptable professionals, continuous learning and skill enhancement are essential.
While the generation born in the 1990s may feel uncertainty about the future, overcoming these challenges is possible through wise financial planning and preparedness. Continuous self-improvement and proactive actions to prepare for the future will be the first steps towards a more stable and prosperous future.
