Japan's largest bank plans to extend retirement age to retain talent amid aging population pressures

MaticHoleFiller · 2026-04-07T03:37:48+00:00

Under the pressure of an aging population, Mitsubishi UFJ Financial Group plans to raise the mandatory retirement age from the current 60 to 65 to retain talent.Mitsubishi UFJ Financial Group is the largest among Japan's three major mega-banking groups. The company announced on Wednesday that this move will take effect in April 2027 as part of its "Human Capital Plan" to enhance long-term workforce sustainability. The plan also includes increasing paid parental leave from 10 to 20 working days and providing a one-time bonus of up to 100k yen ($630) for temporary staff.Japan has long faced a crisis of low birth rates and an aging population. Data from Japan's Ministry of Health, Labour and Welfare last month showed that the birth rate in Japan will decline for the tenth consecutive year in 2025. Prime Minister Sanae Takaichi pledged to take new measures to address the population challenge, including reducing the cost of childbirth.

MaticHoleFiller

2026-04-07 03:37:48

Under the pressure of population aging, Mitsubishi UFJ Financial Group plans to raise the mandatory retirement age from the current 60 to 65 to retain talent.

Mitsubishi UFJ Financial Group is the largest in scale among Japan’s three major mega-banking groups. In a statement released on Wednesday, the company said the move will take effect in April 2027 and is one of the measures under its “human capital plan,” aimed at improving the long-term sustainability of the workforce. The plan also includes increasing paid parental leave from 10 working days to 20 working days and providing replacement staff with a one-time bonus of up to 100k yen (630 dollars).

Japan has long faced a crisis of low birth rates and population aging. Data from the Ministry of Health, Labour and Welfare of Japan released last month showed that Japan’s birth rate in 2025 will fall for the tenth consecutive year. Japanese Prime Minister Sanae Takaichi has pledged to take new measures to address the population challenge, including lowering the cost of having children and revisiting policies for admitting foreign workers.

For a long time, Japanese companies have generally required employees to retire at age 60, though they are usually rehired under a new contract; however, their pay is typically reduced significantly. Mitsubishi UFJ Financial Group’s move indicates that this practice is beginning to change. Companies such as Daiwa Securities and Nomura Holdings are offering more favorable terms to older employees.

A wealth of information and precise analysis—on the Sina Finance app

Byline: He Yun

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.