KOR
▲ Office workers in Tokyo, Japan
Driven by the expansion of the Nippon Individual Savings Account (NISA) tax-free investment system and rising stock prices, an investment boom is sweeping Japan, centered largely around the younger generation.
As the number of so-called FIRE (Financial Independence, Retire Early) followers aiming to build wealth and retire early grows, side effects such as extreme frugality known as "NISA poverty" are also emerging.
FIRE is a coined term combining "Financial Independence" and "Retire Early," referring to a lifestyle where individuals cover their living expenses after retirement using returns from asset management.
In a report published today (the 4th), the Yomiuri Shimbun noted that stories of people leaving their jobs early and enjoying a relaxed lifestyle thanks to successful investments are stimulating the psychology of young people.
This atmosphere has been driven by the "New NISA," which expanded tax-free benefits in 2024.
As of the end of 2025, cumulative NISA purchase amounts reached 71 trillion yen, doubling from 2023.
NISA accounts are held by 26 percent of people in their 20s and 38 percent of those in their 30s, with investment volumes surging to more than three times 2023 levels for 2020s-somethings and nearly four times for 30s-somethings.
While male students accounted for 90 percent at an investment academy in Tokyo in 2014, the proportion of female students has recently risen to 60 percent.
Regardless of gender, this is seen as the result of a steep rise in participation by young people who feel anxious about the future amid inflation.
On the other hand, cases of sacrificing daily life due to excessive investment are being reported one after another.
The case of a 30-something office worker in Tokyo who pours 400,000 yen into investments each month, survives on one meal a day, and cuts monthly living expenses to under 50,000 yen was also introduced.
Concerns regarding this phenomenon are also being raised.
An expert formerly with the Bank of Japan warned, "While many people have only experienced success due to rising stock prices over recent years, investments always entail risks."
In addition, damages from social media-type investment scams promising guaranteed profits have surged.
According to the National Police Agency, damage amounts in the first half of this year alone reached approximately 79.8 billion yen, accounting for nearly half of all special fraud cases, emerging as a major social issue.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.
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