Reports have emerged that Japan's youth are leading a new investment trend that goes beyond their parents' savings-centric culture. Factors such as inflation concerns, anxiety about the national pension, and the government's expansion of tax-free investment systems are contributing to a rapid increase in interest in risky assets like stocks and funds.
Bloomberg reported on the 8th (local time) that, quoting a survey by the Japan Investment Trust Association, the investment ratio of stocks, bonds, and mutual funds among people in their 20s in Japan has nearly tripled from 13% in 2016 to 36% as of 2023.
During the same period, the percentage for individuals in their 30s also increased from 24% to 42.5%. According to the Financial Services Agency, the number of NISA accounts (tax-free investment savings accounts) held by those under 40 reached 7.4 million as of September last year, an increase of about 1.6 million compared to the same period the previous year.
The expansion of investment among Japan's youth goes beyond mere pursuit of revenue; it is also linked to life planning. Asuka Koizuki, a 19-year-old student at Keio University, told Bloomberg, "I'm anxious about retirement in an aging society," and added, "I can't just see savings as safe, so I decided to invest." In response to a reporter's question about how he felt after the market became unstable due to President Trump's tariff measures, he said, "On the contrary, I became able to invest more carefully."
Naoto Otama, a 19-year-old student at Keio University, stated, "I am considering investing to prepare for life events such as marriage, childbirth, and acquiring dwellings." He emphasized the necessity of investment, saying, "The current inflation rate and pension system make the future uncertain."
Analysts believe that the changing perceptions among Japan's younger generation are partly due to the government's expansion of NISA and strengthened financial education. In fact, practical investment clubs are emerging in high schools and universities across Japan, and some schools have also introduced programs where students can manage real funds and receive evaluations of their performance. At a correspondence high school in Okinawa, over 100 students are participating in actual investments of 200,000 yen (about 1.93 million won) each.
Japanese financial authorities are also making efforts to expand the investment base. According to the Bank of Japan, only 7% of Japanese citizens had received formal financial education by 2022. Subsequently, the government has begun to strengthen education, particularly focusing on practical investment training for high school students, which blurs the boundaries between learning and asset management, attracting the interest of the younger generation.
Experts predict that the generational shift will positively impact Japan's capital markets. Masahiro Yamaguchi, a senior market analyst at SMBC Trust Bank, noted, "Generation Z has not experienced market downturns and is insensitive to volatility," adding, "They can become a robust buying force in the stock market with consistent investment habits."
Kanako Uchimura, a researcher at the Japan Research Institute, explained, "The inflation environment is actually broadening the asset accumulation opportunities for the younger generation," and stated, "Establishing long-term investment habits is a future challenge."