<h3>One year since the launch of the new NISA. Did those who started investing make a profit!?</h3>
One year has passed since the launch of the new NISA. According to a survey on personal asset formation conducted in November by QUICK Asset Management Research Institute, a private financial research organization, targeting 5,075 people nationwide aged 18 to 74, about 30% of respondents were using NISA. The survey revealed that the majority of them had secured investment gains.
<figure id="attachment_410844" class="wp-caption alignnone" style="width: 640px;" aria-describedby="caption-attachment-410844"><a href="#" data-ident_hash="e11d5024"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2025/01/813ff0c4b12d1eb820c852f97bf354d7.jpg" alt=""></a><figcaption id="caption-attachment-410844" class="wp-caption-text">Interest rates have risen, but is it not enough to steadily save in deposits?</figcaption></figure>
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<h3>For amateurs like me, it seems difficult, likely to incur losses, and risky</h3>
The new NISA system has already been in place for a year. The author, a housewife in her 40s and a freelance writer, left her job of 10 years and became self-employed the year before last. Since then, her vague financial anxieties have grown, making her increasingly interested in investments such as the new NISA and iDeCo (individual-type defined contribution pension plans), though she hesitated to take the first step.
The reason? She had a mental block against investing, believing that investment = difficult. She thought investing was something only people with financial surplus could do, that amateurs like her would only lose money, and that it was dangerous without strong numerical skills. These preconceived notions made investing seem like a high hurdle.
However, she gradually started hearing that her peers—friends and former colleagues she assumed were indifferent to finance—had begun using the new NISA. Realizing she was now part of the latecomers group, she felt even more left behind.
Then, during an interview for a magazine, a financial expert bluntly told her: &#8220;From now on, simply saving a fixed amount from your salary won&#8217;t be enough. Whether you&#8217;re a company employee or a freelancer, you need to invest and make your money work for you.&#8221; This statement further intensified her anxiety about her financial future.
<h3>Interest rates have risen, but is steadily saving money in deposits not enough?</h3>
To begin with, investment refers to investing one&#8217;s own money in stocks, mutual funds, and other financial assets with the expectation of a profit. Efficiently increasing one&#8217;s assets, including investments and savings, is called asset management.
For inexperienced investors like the author, the most interesting question is &#8220;Why should I start investing now? Like me, there are probably many people who are saving a fixed amount every month in advance from their income.
Even without investing, if you have enough in your savings account that you have been saving diligently, you probably don&#8217;t have to worry about it. I feel that saving in the bank would give me the joy of saving hard and the peace of mind of not losing money. Kenji Matsuoka, a money writer and financial planner, answered these questions.
&#8220;One of the reasons to start investing is inflation. While diligently saving through regular or fixed deposits is important, even a 10-year fixed deposit at a bank offers only about 0.4% interest, meaning your money barely grows.
On the other hand, prices have risen by approximately 10% over the past three years. If this trend continues and the costs of goods and services keep increasing, the value of cash will decline, making life financially tougher in the future. That’s why it’s important to take early action. Instead of just holding onto cash, growing your money at a rate similar to inflation is a form of self-protection.&#8221;
Indeed, even though prices have gone up, bank interest rates are low, and there is little hope of increasing them. In other words, it is just a safe-deposit box situation.
And for the author, who is also a housewife, the rise in prices is something she has experienced firsthand to the point of disgust. Vegetables that were priced at 98 yen a few years ago at the supermarket have risen to nearly 200 yen, causing me to worry about putting them in the shopping basket and to change the menu for dinner that I had planned to cook.
When eating out, a set meal that used to cost 1,000 yen now costs nearly 1,500 yen. Even if you had 1,000 yen in cash, you could no longer buy the same quantity and quality of goods and services today as you could a few years ago, and the amount of money you pay has certainly increased.
&#8220;Once prices rise, they generally do not come down. Fresh produce is highly volatile, and the prices of rice and vegetables can fluctuate due to weather conditions, so they may be lower compared to last year.
However, for example, farmers face rising costs for fuel used in agricultural machinery, increasing fertilizer prices, and labor shortages, which are driving up expenses across all industries. This applies not only to goods like food but also to services. Considering these factors, it is unlikely that prices will decrease in the future.&#8221;
<div data-friday-nextpage-lead="What can we expect from the government's &quot;pension system&quot;?"></div>
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<h3>&#8220;In 25 years, I will be 65 or older. Can we rely on the national pension system?&#8221;</h3>
Prices will continue to rise from here, and it is difficult in today&#8217;s society to significantly increase one&#8217;s income in a short period of time. The amount of money to be paid, such as increases in social insurance premiums and national pension premiums, will gradually increase, putting pressure on the lives of the working generation. This means that it is necessary to gradually increase one&#8217;s current assets and create a household budget that will not be shaken by rising prices.
Another reason why investment is necessary, Matsuoka says, is the issue of funds for retirement.
&#8220;Many people are saving for retirement, but the value of cash is expected to decline further in the coming decades. Even if inflation stabilizes in the near future, over a span of 20 to 30 years, the overall increase will be significant. It’s better to start taking measures early to compensate for this. Growing your funds through investment is essential for ensuring a secure retirement for yourself and your family.&#8221;
The author, who is in his early 40s, will be over 65 years old in about 25 years, and will be eligible for pension benefits. Although it is still difficult for me to envision a concrete image of my life in old age, I do not want to live a money-laden life that makes me feel poor in spirit. The government&#8217;s pension system is indispensable for such a life in old age, but should we not expect too much from it?
&#8220;Some people may have the impression that pensions are meant to ensure a living for those who can no longer work in old age. However, as the name pension insurance suggests, it is fundamentally an insurance system. Originally, it was intended to provide only the minimum necessary living expenses for survival. Since the government never clearly communicated this to the public, the belief that one can live off their pension in old age became deeply ingrained over the years.
However, as pension reforms continued to worsen, public dissatisfaction over insufficient pensions grew louder. In response, the government introduced the old NISA system in 2014, with the intention of encouraging citizens to take initiative in growing their retirement funds beyond just relying on pension insurance.&#8221;
<figure id="attachment_410845" class="wp-caption alignnone" style="width: 6525px;" aria-describedby="caption-attachment-410845"><a href="#" data-ident_hash="88056667"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2025/01/3646d88b8a1b3daa4e8cfbf09540a41f-1.jpg" alt=""></a><figcaption id="caption-attachment-410845" class="wp-caption-text">From the survey on NISA usage (conducted by Better Place) (Survey conducted nationwide in December 2024 on 612 men and women in their 20s to 50s).</figcaption></figure>
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<h3>Japan, where relying solely on social security to support the people&#8217;s retirement is beginning to reach its limits</h3>
When the old NISA was introduced, it was supposed to encourage a shift from savings to investment, but only a limited number of people actually started investing. As mentioned earlier, the author also had an image of investment as something too difficult to understand, which prevented any serious effort to gather information. Many others likely felt the same way, seeing it as someone else&#8217;s concern.
&#8220;Japan experienced prolonged deflation, during which prices did not rise but rather fell. As a result, most people did not feel an urgent need to manage their assets. However, as issues surrounding retirement savings became apparent and prices started rising in recent years, public interest in asset management has increased.&#8221;
With a declining birthrate and growing concerns about the sustainability of social security, Japan has begun to reach its limits in supporting its citizens&#8217; retirement solely through public funds. To make investing more accessible to the public, the government introduced a revamped version of the old NISA—the new NISA system. This marks a serious effort by the government to encourage individuals to build their own assets rather than relying solely on pensions for the future.
&#8220;In Japan, investment profits are usually subject to a tax of around 20%. However, with NISA, any profits made through investments are tax-free. This tax exemption is the biggest advantage of NISA. The old NISA had some drawbacks, such as limited tax-free periods of five or twenty years depending on the investment type, and a relatively small investment limit.
On the other hand, under the new NISA, the tax-free period is now unlimited, and the lifetime investment limit has been increased to 18 million yen. By making full use of the new NISA, it is now possible to cover a significant portion of retirement savings through investment.&#8221;
The primary goals of investing are to prepare for continued inflation and secure funds for retirement. As people age, they may not be able to work at the same pace as they do now, and it is impossible to predict how much prices will rise in 20 or 30 years. Additionally, physical decline may lead to higher medical expenses and increased costs to maintain good health. Investment could serve as a way to alleviate financial anxiety and provide peace of mind for the future.
That being said, when it comes to actually starting, the author—who has zero knowledge of investing—finds it difficult to know where to begin. In the next installment, we will cover &#8220;How to Open a NISA Account&#8221; and &#8220;How to Choose a Securities Company.&#8221;
▼ Kenji Matsuoka: Money writer and financial planner. After working as a market analyst at a securities firm, he became independent in 1996. He writes about finance and asset management for business and economic magazines. His books include The First-Year Guide to Robo-Advisor Investing and A Comprehensive Guide to Cashless Payments for Maximum Savings.

 Born in Yamagata Prefecture in 1983, Yoko Kemmochi worked for 10 years in the editorial department of a health information magazine, editing monthly magazines and web media before becoming a freelance writer. Currently, she interviews, plans, and writes about doctors and specialists, focusing on health care and medical fields.

 Yoko Kemmochi

 As a housewife and writer in her 40s, I have been feeling vaguely anxious about money, and have been curious about investments such as the new NISA and iDeCo, but I have been unable to take the first step. She was completely "late to the game.

Missed the NISA Boom? Why Saving Alone Isn’t Enough

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