june 7, 2019 bank of japan financial inclusion in an aging society keynote speech at the g20 high - level symposium on aging and financial inclusion ( gpfi forum ) in tokyo haruhiko kuroda governor of the bank of japan introduction it is a great honor for me to speak at the g20 high - level symposium on aging and financial inclusion ( gpfi forum ) today. 1 this year, i co - chair the g20 finance ministers and central bank governors meetings with minister aso. one of the priorities for g20 finance track in 2019 is " aging and its policy implications, " and this is related to the theme of today's forum, " aging and financial inclusion. " i trust the outcome of this symposium will contribute significantly to the discussions at the g20 meetings. japan is one of the most aged countries in the world. sooner or later, other countries will face a similar situation. today, i would like to talk about the current situation in japan and the challenges it faces, focusing on financial inclusion in an aging society, with respect to personal finance and financial literacy in particular. i. aging society and financial literacy japan's average life expectancy in 2017 was 81 years for men and 87 years for women. over the past 50 years, longevity has risen dramatically, by 13 years for men and 14 years for women. aging itself is something to be welcomed in that people have always wished for a longer life. meanwhile, issues surrounding the aging society have been brought into the spotlight. from a financial perspective, household finance management after retirement is particularly important. how to make ends meet in later life is an issue many people face. in terms of personal finance, in japan, public pensions are generally the main source of income after retirement. however, given life's uncertainties, public pensions alone may not always be sufficient. when expenditure exceeds income, people commonly offset the gap by withdrawing the financial assets they had been saving until then. global partnership for financial inclusion ( gpfi ) is an inclusive platform for all g20 countries, interested non - g20 countries, and relevant stakeholders to carry forward work on financial inclusion, including implementation of the g20 financial inclusion action plan, endorsed at the g20 summit in seoul in 2010.. according to a survey conducted in 2018 by the central council for financial services information ( ccfsi ) in japan, the average amount outstanding of financial products held by households with two or more people was 14. 3 million yen. 2 looking

at the results by age, the amount outstanding held by those in their twenties was about 2. 5 million yen, while for those in their sixties, the figure was about 18. 5 million yen. it could be said that, overall, senior citizens in japan already hold a substantial amount of financial assets. nevertheless, people in their sixties need to learn how to extend the life of the assets they have accumulated, especially as they can now expect to live another 20 to 30 years, or even more as we look ahead to a normal life span of 100 years. meanwhile, for the younger generation, it is important to accumulate assets steadily over time, as they look forward to living a long life. on this point, long - term personal asset formation finds policy support in japan through the expansion of tax benefit systems. one example is japan's individual savings account for the long - term, diversified, and periodic investment of a small fixed amount with tax exemption, or the tsumitate nisa. another example is individual - type defined contribution private pension plan with various tax benefits, or the ideco. as life expectancy increases, people need to find ways to extend the life of their financial assets. this means that everyone has to plan for their lives after retirement and acquire financial literacy - - that is, to obtain the knowledge necessary to manage their money effectively. the importance of financial education was discussed at the g20 los cabos summit in 2012, and was emphasized in the leaders declaration. 3 in relation to financial education, i would like to briefly touch upon the aforementioned ccfsi. the ccfsi has its secretariat at the head office of the bank of japan. it promotes the advancement of financial knowledge under the following two principles : to provide financial and economic information, and to disseminate pecuniary education. it has a nation - wide network with local committees in all 47 prefectures in japan. in cooperation with the head office, branches, and local offices of the bank of japan, as well as the government, local public bodies, private entities, and others, the ccfsi works to enhance citizens'financial literacy from a neutral and fair position. ccfsi, survey of household finances, november 2018 ( available only in japanese ). g20, g20 leaders declaration, june 2012. ii. financial inclusion for senior citizens next, i would like to elaborate on financial inclusion for senior citizens. the concept of financial inclusion holds that no one should be left behind