Child NISA to Begin in 2027 With Withdrawals Allowed From Age 12
Japan will launch a new tax-free investment program for children in January 2027, allowing parents to invest up to 600,000 yen a year on behalf of children aged 17 or younger while permitting withdrawals from age 12 for expenses such as education and living costs. (News On Japan)
Japan will launch a new tax-free investment program for children in January 2027 called Child NISA. Parents can invest up to 600,000 yen annually on behalf of children aged 17 or younger, with the option to withdraw funds from age 12 for expenses like education and living costs. A survey found 39.3% of parents with children aged 17 or younger expressed interest in the program, driven by concerns about education costs.
Withdrawals are restricted to the child's benefit and require their consent. The program aims to encourage households to invest more, addressing the inflexibility of the previous Junior NISA system, which only allowed withdrawals at age 18.
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