Indeed, it is important to ensure that such wealth is properly decumulated. Therefore, the most important choice is the extent of annuitization. It is difficult not to agree that annuitization of a significant fraction of private pension wealth is highly advisable.
If labor and capital shift swiftly from low-productivity sectors to high-productivity sectors, this should sustain high productivity growth in the economy overall. In contrast, reflecting population aging and a falling birth rate, the growth rate of Japan's working-age population first declined and then turned negative during the 1990s.