Why in Japan the government is urging people to invest. “Many elderly Japanese have their money physically at home,” says a stock market expert.
A new investor culture is emerging in Japan. There are significant reservations about investing. The stock market correction is unlikely to help.
Japan is experiencing a new investor culture, with younger people aged 20-30 more willing to invest in stocks using online platforms and index funds. The government's Nippon Individual Savings Account (Nisa) program, introduced in 2014 and reformed in 2024, has made investing more accessible and popular, with over a quarter of the population participating.
Despite this, many Japanese, especially older generations, remain cautious and prefer to keep their money in savings accounts or under their mattresses due to a lack of financial literacy and past experiences with economic downturns. The Nikkei 225 index has outperformed the S&P 500 since 2023, but Japan's long-standing deflation has made people wary of investing, and it may take time for this mentality to change.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
