Key Facts
• New NISA expanded significantly, entering its third year in 2026.
• Government promotes shift from savings to investment to boost economy and asset formation.
• New NISA started January 2024; accounts rose from 21 million (Dec 2023) to 27 million (June 2025), a 30% increase.
• Account opening rate exceeds 30% among people in their 30s and 40s.
• Nikkei 225 surpassed 52,000 yen, reflecting market vitality.
• Rising deposit interest benefits households; higher mortgage rates increase burdens on working generation.
• NISA encourages long-term, small, diversified investments to reduce risk.
• Government’s December 2025 reform allows “installment investment quota” use for under 18s.
• Withdrawals allowed from age 12 with child’s consent.
• Parents can open accounts for children to prepare for major expenses like university.
• Popularity of US stock-based funds causes capital outflow, contributing to excessive yen depreciation.
• New Japanese indices added to investment options: JPX Prime 150 and Yomiuri 333.
• Index expansion aims to promote domestic stock investment and foster growth-investment-wage virtuous cycle.
Summary
The New NISA system, expanded since 2024, aims to support stable household asset formation by encouraging a shift from savings to diversified investments. Account numbers have grown by 30%, especially among people in their 30s and 40s, reflecting rising public awareness. The government’s recent reforms include allowing installment investments for minors under 18, with withdrawal restrictions to protect children’s interests. While rising deposit interest rates benefit households, higher mortgage rates increase financial burdens for working adults, highlighting the need for financial literacy and strategic asset management. Challenges remain, such as capital outflows to US stock funds causing yen depreciation. To counter this, new Japanese stock indices have been added to the investment options, promoting domestic investment. Overall, the expanded NISA framework supports long-term, risk-diversified investing, aiming to create a positive cycle of corporate growth, investment, and wage increases.
