TOKYO - The average monthly amount invested by people in their 20s who use NISA has reached 34,432 yen, with the amount young adults are putting into investments continuing to rise and even giving birth to the phrase "NISA poverty."
The expression surfaced during a Diet session on March 10th.
Ken Tanaka of the Democratic Party for the People asked Finance Minister Satsuki Katayama whether she had heard the term "NISA poverty."
The phrase refers to people who, driven by anxiety about the future, prioritize NISA investing to such an extent that they cut back too heavily on everyday living expenses and end up struggling financially.
Katayama said she was somewhat shocked by the term, adding that it is extremely important for people to receive proper and objective financial education and life-planning guidance.
Young people on the street also voiced strong concerns about the future.
A company employee in his 20s said he uses NISA and currently invests about 30,000 yen a month, which amounts to roughly 20% of his salary. He said he worries about whether he will be able to afford a home in the future as real estate prices continue to rise.
A student in his 20s said simply that he does not know what the future holds.
Some young people said they are making other kinds of investments besides NISA.
A company employee in his 20s said that spending money on a variety of experiences could also lead to greater earnings in the future, adding that using money for things such as social gatherings with supervisors or opportunities that could make it easier to secure a raise or promotion is worthwhile in its own way.
Others said they are not personally living in "NISA poverty," but understand the mindset behind it.
A university employee in his 30s said it is hard not to feel uncertain about whether Japan will continue to grow and become a country where incomes keep rising, adding that it is only natural to think carefully about how much money to keep on hand, how much not to spend, and how much to save.
According to caster Demizu, both the number of NISA accounts and total investment amounts have continued to rise steadily, with growth accelerating in particular since the launch of the revamped "New NISA" program, which expanded tax-free investment limits.
Figures from the Financial Services Agency show that people earning less than 5 million yen a year accounted for about 70% of NISA users in 2024.
The breakdown was 39.7% for those earning less than 3 million yen, 27.7% for those earning between 3 million yen and less than 5 million yen, and 67.4% in total for those with annual incomes below 5 million yen.
Young people are also said to be placing greater priority on investing than on hobbies or leisure spending.
A comparison between 2024 and 2026 shows that while monthly investment amounts increased, discretionary spending money declined.
According to an SMBC Consumer Finance survey, the average monthly amount invested by people in their 20s rose from 23,589 yen in 2024 to 29,678 yen in 2026, an increase of about 6,000 yen.
Meanwhile, average monthly spending money fell from 37,096 yen in 2024 to 32,159 yen in 2026, a drop of about 5,000 yen.
Demizu then raised the question of how people can avoid falling into "NISA poverty."
Financial planner Nanako Tsukagoshi said one guideline is to save around 10% to 15% of annual income first, then invest only the portion that has remained unused for several years, including money set aside for unexpected expenses.
According to the Ministry of Internal Affairs and Communications' 2024 Family Income and Expenditure Survey, one in five households with two or more people had savings of less than 3 million yen, and half of those had less than 1 million yen in savings.
For such households, whether they should be investing through NISA is something that needs to be considered very carefully.
Source: TBS
