Mitsubishi UFJ Financial Group (MUFG), a major financial institution in Japan, has announced its new policy to extend the retirement age up to 65-years-old at one of its subsidiaries. The move comes as part of the bank's approach to counter the country's aging population and labor decline. It also aligns with Japan's revised Stabilization Employment Act of Elderly that advocates for employment extension until the age of 70. The initiative is set to commence as soon as necessary approvals are secured from the relevant labor bodies.

Japan faces a rapidly aging population combined with declining birthrates, which leads to labor shortages, especially in traditional sectors. Many senior employees wish to remain active in the workforce beyond the conventional retirement age for continuity and financial security. Therefore, companies exploring options to extend retirement age is seen as a positive step in addressing these challenges.

In contrast, the discourse in the US or EU often revolves around how to provide comprehensive social security and healthcare for retirees, rather than extending working years. The default retirement age (at which you can draw your full retirement pension) is between 65-67 in the US and between 60-67 across EU countries.