Life expectancy at birth is currently over 82 years in Italy (15 years longer than in 1950) and close to 84 in Japan (20 years above the 1950 level); in both countries it will exceed 87 years by 2050.
3  Japan and Italy are therefore frontrunners in facing the economic and institutional adjustments demanded by this demographic transition, which is unprecedented and has far-reaching implications in terms of productivity growth, the balance between saving and investment, pension requirements and long-term care. There are clear implications here for public finances and asset markets.