Japan’s aging population and public deficits", http://www.eastasiaforum.org/2012/06/21/japans-aging-population-and-public-deficits/Given that the VAT in Japan is only 5%, there is plenty room to raise revenue from an increase in VAT.
While raising tax may improve government budgetary positions, it does not necessarily increase output of the economy.
So other ways should be considered to increase the economy at little or no costs to the budget.
Maybe a scheme of volunteers should be established for older people who are able and willing to be involved in voluntary work with government agencies or private firms and organisations.
People are now living longer and healthier, as a result, many older people may still be able to work to contribute to the economy or society.
By getting involved in some sort of productive activities, many older people may be even living happier.
Of course, such a scheme should and must be voluntary.