According to a recent survey, nearly one in four people in Japan invest in securities such as stocks, bonds and mutual funds, the highest level on record thanks to the government’s tax-exemption system for personal investments. .
However, the Japan Securities Dealers Association’s survey also suggests that financial education still lags behind in a country known for its high household savings rate.
The survey, conducted every three years, found that 24.1% of respondents owned securities in 2024, up from 19.6% in 2021. This is the highest level since collection began.
The rise came after the government expanded its tax-free investment program in January to encourage the shift from savings to investment.
The survey was conducted in June and July and surveyed 7,000 people aged 18 and older. They found that the revamped tax-exempt program has made 60.3 percent of respondents interested in building wealth, and 22.2 percent have started investing in securities using the government program.
However, the survey also highlighted Japan’s lagging financial literacy, with 7.5% of respondents saying they had received some education about securities investing, up slightly from 6.4% in 2021.
When asked if they knew about basic risk mitigation strategies such as portfolio diversification, 19.5% answered yes, compared to 14.8% in 2021.
Another survey conducted by Sumitomo Life Insurance in September found that only 4.3% of respondents with investment assets had received financial education, and 72.1% relied on the Internet to gather investment information. It was found that 64.3% of respondents wanted to improve their financial literacy. .
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