In Tokyo, a 51-year-old woman works as a contract employee at a public institution, earning about 150,000 yen (approximately $1,320) each month, of which 70,000 yen goes toward rent. Her studio apartment has thin walls, allowing her to hear her neighbor snoring. Despite spending 100,000 yen on soundproofing, it has had little effect. Being on the top floor, her room can exceed 30 degrees Celsius even after she returns home from work in the summer.
This woman is part of Japan's 'Employment Ice Age' generation, a term referring to those who entered the workforce between 1993 and 2004, during a time when companies significantly reduced hiring following the collapse of the bubble economy. While some have secured stable jobs, many have struggled to establish a solid foundation in their middle age, often moving between temporary and contract positions.
As this generation has aged, the traditional family structure in Japan, typically consisting of couples and children, has changed. The number of single-person households has increased, raising questions about the challenges faced by these individuals.
The woman mentioned earlier married in her 30s but later divorced and is now single. In her youth, she worked as a temporary employee filling in for those on parental or caregiving leave in the Kansai region. As workers returned from leave, she found herself repeatedly losing her job. Now older, she has sought stable employment but has faced barriers due to her age. She moved to Tokyo without a plan, where she found more job opportunities. Although her current position is not permanent, she has secured employment.
The issue, however, lies in her housing costs. After paying rent, she is left with 80,000 yen for living expenses.
Her parents' generation was able to transition from public rental housing to homeownership. This woman has fond memories of living in public housing as a child. She has looked into rental options but often finds no vacancies or rooms that cost 150,000 yen for three bedrooms, which is equivalent to her monthly income. She does not need that much space.
With her limited income, the monthly rent also poses a burden for her retirement savings. Risa Kuzunishi, a professor at Otemon Gakuin University, noted in an interview with Nikkei that many single women from the Employment Ice Age generation have faced difficulties due to irregular and low-wage jobs, leading them to continue working to afford rent due to low pensions and savings.
But what about single-person households from the Employment Ice Age generation that can afford rent? A single woman in her 40s, working in a technical role at a manufacturing company in Osaka, volunteered to work in Tokyo to attend concerts of her favorite band. She lives in a convenient urban area and receives housing support from her company, earning an annual salary of about 7 million yen. When she was finishing graduate school, she faced the Employment Ice Age. When she asked a professor for a job recommendation, she was told, "If it's hard for male students to get hired, imagine how much harder it is for female students. Can you expect to get a job with just one application? I'll write several for you." Compared to that time, she feels satisfied with her current situation.
However, the thought of her next housing contract brings anxiety. When she listed her elderly father as her 'emergency contact' for her current lease, she was told, "We cannot accept anyone over 70 years old." While she was able to get through this time, she worries about future contracts.
In Japan, renting a home often requires not only the ability to pay rent but also a 'guarantor' and an 'emergency contact.' A guarantor is someone who agrees to pay the rent if the tenant fails to do so, while an emergency contact is someone to be notified in case of an accident or illness.
If it is difficult to ask family members to act as a guarantor, tenants can pay to use private guarantor companies. According to the Ministry of Land, Infrastructure, Transport and Tourism, the usage rate of guarantor companies has increased from about 40% in 2010 to over 80% in 2023. Typically, tenants pay an initial fee equivalent to 0.5 to 1 month's rent, followed by regular service fees.
While financial solutions exist for guarantors, emergency contacts are often still required. The woman fears that when her father passes away and she herself becomes elderly, she will have no one to turn to. She has no siblings and has limited contact with relatives, making her hesitant to ask for help.
Ryo Yamamoto, the representative of R65 Real Estate, told Nikkei that while the environment for single individuals to rent homes is gradually improving, challenges remain for those without family to rely on, such as the emergency contact issue.
Could buying a home be a solution? Some individuals have found that homeownership has provided a safety net for their retirement. A single man in his early 50s living in Saitama purchased a newly built apartment near a train station for about 50 million yen a decade ago, aiming to establish a living foundation for himself. At the time, he felt anxious about making such a significant financial decision. However, this year, he learned that the value of his home has increased by over 40% since he bought it. He reflected that he had little information to predict the surge in housing prices at that time, saying, "I think I was just lucky." He believes that if he had delayed his decision, he would now have to find a home in a less convenient area for the same amount of money. His home has become a valuable asset, providing him with the option to sell if necessary.
Thanks to his homeownership, this man has alleviated concerns about rent, guarantors, and emergency contacts. But does this mean a happy ending? In the future, when he needs to move to senior housing or a nursing facility, he will face another hurdle: the requirement for a 'guarantor.'
A woman in her 40s living with her husband in Chiba Prefecture has fully paid off the mortgage on a single-family home she purchased for about 22 million yen in 2011. Together, the couple earns about 15.5 million yen annually and has sufficient investment assets. They bought a spacious home with plans to raise children, but after five years of infertility treatment, they decided to live together without children. They each have personal rooms in addition to the master bedroom and enjoy gardening in their yard.
This woman, who has a home, assets, and family, expresses her greatest fear: 'lonely death.' Her husband is seven years older than she is. If he passes away first, she will be left alone and become a single-person household from the Employment Ice Age generation. She hopes to live in a senior housing facility that offers housekeeping services as she ages, but she worries about who she can ask to be her guarantor when the time comes. This concern mirrors that of the man in his 50s.
The guarantor required by senior facilities has a broader role than that of a rental guarantor, and the requirements vary by facility. In addition to emergency contacts, some facilities ask for assistance with payment obligations or post-death procedures. This is a more complex issue than simply listing an emergency contact. A 2022 survey by the Ministry of Internal Affairs and Communications found that over 90% of hospitals and nursing facilities require a guarantor, and about 15% of them would refuse service without one.
The Japan Research Institute estimates that the number of elderly individuals without children will rise from about 5 million in 2024 to approximately 10 million by 2050. This suggests that more people will need to seek alternative support for guarantees and living assistance that families traditionally provided.
According to Nikkei, there are over 400 private companies in Japan that can act as guarantors in place of family members, but many of them are small businesses. Japan has also amended laws to allow social welfare councils to support elderly individuals without family. However, Kanae Sawamura, a senior researcher at the Japan Research Institute, explains that there is a shortage of personnel to provide support on the ground, and elderly individuals still face challenges in navigating various systems on their own. Thus, adequate alternatives for those without family to rely on for their retirement are still not fully established.
The 51-year-old woman in Tokyo has recently become increasingly interested in communal living arrangements, such as share houses. She recalls a time when she struggled to call an ambulance while alone and jokes with her single cousins about living together in their old age. What she desires most is the reassurance of having someone nearby.
* This article has been translated by AI.
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