Conservative Wealth Management in Japan

投稿者: | 2020-04-26
Sakurajima one of Japan’s most active volcanos in KAGOSHIMA

It is said that Japanese are highly conservative regarding investment in risk assets.

I will introduce the typical result of questions.

The Financial Literacy Survey took place in 2016 and 2019
In the survey, 25,000 individuals aged 18 to 79 were chosen in proportion to Japan’s demographic structure, and they answered questions about financial knowledge and financial decision-making skills. The survey comprised 25 true/false questions. It has 53 items in total including questions about respondents’ behaviors, actions, and personal characteristics, such as gender, age, and prefecture of residence.

I will pick one quesiton and result up.
The result below demonstrates that Japanese people are highly conservative when it comes to investment in risk assets.

Suppose that, if you invested 100,000 yen, you would either get a capital gain of 20,000 yen or a capital loss of 10,000 yen, at 50% probability.
What would you do? Choose only one answer.

[Required entry]
1. I would invest 21.4 %
2. I would not invest 78.6 %

The Financial Literacy Survey, 2016

The result in 2019 was almost same one in 2016

The result by gender
Chose “I would invest”
Men 3,761 out of 12,334 30.5%
Women 1,583 out of 12,666 12.5%

This results show Japanese conservative wealth management.
And, as the below data discribe, many families manage household economy by wife in Japan.

My thesis,Solutions to Improve Financial Literacy and Roles of Financial Advisors in Japan

You can understand more than 50 percent of the balance of personal financial assets constitutes deposit and savings.

The Japanese government encourges people to get interested in investment itself to readiness for their long after retirement by introducing some plans with tax advantage.

NISA, iDeCo are typical examples.
iDeco is individual DC.
I will tell about these plans in detail on this website from now on.

Releted articles
Things to be considered before participating in DC
Defined Contribution in Japan
Personal Finance in Japan


メールアドレスが公開されることはありません。 * が付いている欄は必須項目です