Financial behavior trends in Japan

The Fidelity Institute Japan have published research that highlights the financial behavior and investing trends across the Japanese financial landscape and is based on input from 10,000 Japanese businesspersons.

The survey is the first study we have conducted since the launch of New NISA (an investment tax exemption scheme) and focuses on analysis actual use of this scheme since it’s introduction.

Here are some of the highlights and key findings related from the research:

New NISA Steadily Promotes “From Savings to Investment”

• 63% of those who started investing cite the “start of New NISA” as the key driver. It has contributed to the attraction of middle- and lowincome groups and non-regular employees.
• 43% of General NISA users and 55% of Tsumitate NISA users said they would increase their investments under New NISA.
• The most common source of funds for investment under New NISA is salary and bonuses, but nearly 40% of respondents shift funds from their savings account (bank deposits).
• Foreign equity investment trusts and Japanese individual stocks are the top two investment targets.

In addition to social media (SNS) and news websites, TV and radio are also popular sources of information about money

• However, respondents with high financial assets tend to depend on news websites and financial institutions, rather than SNS or TV.
• Similar to last year, men are more likely to use YouTube and women are more likely to use Instagram; X (Twitter), TikTok, and Instagram are more popular among younger respondents, while Facebook and YouTube are more popular among older respondents.
• The implementation rate of workplace financial education remains low at 30% for full-time employees and 13% for non-regular employees.

The more people know about public pension benefits, the more they prepare their own savings as well.

• People depend on public pension, earned income and NISA in this order as retirement provisions.
• Younger generations have high expectations for account-based self-help programs as a source of retirement provision, and a significant expansion of iDeCo (individual defined contribution plans) programs is anticipated for the future.