Japan's brokerages boost pay, perks for retirement-age employees

Japan's biggest securities firms are raising pay and benefits for workers who reach retirement age, highlighting the urgency to retain talent in one of the world's fastest-ageing countries.

Workers who reach 60 or above typically face a steep drop in their salary when they are re-employed, and diminished roles such as creating documents. Now, they are increasingly getting paid for performance and given heavier responsibilities in line with their experience.

At Daiwa Securities Group, compensation for senior employees aged 60 or over has risen by an average of 15 per cent over the last two years in Japan.

Nomura Holdings added paid sick leave to its benefits in 2023, on a par with what younger peers get. Sumitomo Mitsui Financial Group's securities unit also hiked pay levels for senior workers for two years in a row.

"The diverse experience and skill sets of employees at 60 or over are important for our business," Japan's biggest brokerage Nomura said in response to queries from Bloomberg.

As an example, "employees with experience in the world where interest rates are above zero can provide information that is difficult for younger generations to imagine".