In Japan, the financial asset gap among young people is widening. Despite the expansion of tax-exempt investment systems and rising stock prices, the average securities holdings among the youth have increased significantly, but the disparity within the same generation has grown. Differences in income levels affect the amount of money available for investment, and many young people lack the time or information to start investing. Concerns are rising that disparities in investment capacity at a young age could solidify into long-term asset gaps.
According to the Nihon Keizai Shimbun (Nikkei) on September 9, the average securities holdings for those under 30 increased from 160,000 yen (approximately $1,400) in 2014 to 790,000 yen (about $6,900) in 2024, a nearly fivefold increase. This survey is conducted every five years and covers about 90,000 households nationwide.
However, the increase in average holdings does not indicate a uniform growth in assets among the youth. The Gini coefficient, which measures income inequality, was 0.718 for those aged 18 to 24 in 2024, the highest among all age groups, while those aged 25 to 34 had a Gini coefficient of 0.682. A Gini coefficient closer to 1 indicates greater inequality. The coefficients for these two age groups increased by 0.017 and 0.005, respectively, compared to 2019. The overall Gini coefficient for financial assets across all age groups also rose from 0.664 to 0.678 during the same period.
Japan's household financial assets reached a record high of approximately 2,400 trillion yen by the end of 2025. Among these, stocks and investment trusts accounted for 564 trillion yen, or 23.6% of the total, matching the proportions seen during the so-called 'bubble period' of the late 1980s to early 1990s. The Japanese Cabinet Office identified the rise in stock prices as a key factor contributing to the increase in financial assets.
Differences in income levels also influence investment capacity. According to market research firm Daikoku Data Bank, as of April this year, 30% of large companies offered starting salaries of over 250,000 yen, compared to just 17% of small businesses. The Gini coefficient for disposable income in 2024 was 0.256 for those aged 25 to 34, higher than the 0.252 for those aged 35 to 44. Generally, income disparities increase with age, but this trend was reversed for these two age groups.
This disparity in investment capacity could lead to long-term asset gaps. The Nikkei pointed out that it is unlikely for the financial asset gap to narrow compared to income disparities. In fact, while the Gini coefficient for disposable income across all age groups slightly decreased from 0.288 in 2019 to 0.286 in 2024, the financial asset gap expanded during the same period.
The tax-exempt small investment system (NISA) has not sufficiently reached the youth demographic. According to the Financial Services Agency of Japan, there were approximately 28.21 million NISA accounts at the end of last year, with about 3.37 million held by individuals in their 20s. This means that only one in four people in their 20s holds a NISA account, which is lower than the one in three ratio for those in their 30s, 40s, and 50s.
Even when accounts are opened, many do not purchase financial products. The Nikkei reported that as of the end of last year, 35.7% of NISA accounts held by those in their 20s had no purchase activity for a year. Considering that the account ownership rate for this age group is 26.4%, it is estimated that only about 17% of the population in their 20s made purchases through NISA last year.
Barriers to investment are not solely financial. A 20-something employee in Tokyo, who earns about 6 million yen, stated that while he has the capacity to invest, he does not want to worry about price fluctuations and lacks the time to thoroughly explore financial products. A survey conducted by asset management firm Sezon Asset Management among those in their 20s and 30s who do not invest revealed that the most common response was uncertainty about which products to choose. Responses indicating a lack of time or fatigue from studying investments were also notable. Tei Misa, a senior researcher at Dai-ichi Life Asset Management Economic Research Institute, suggested that financial institutions should assist young people not only in opening accounts but also in selecting products and setting up systematic investments to help them start investing.
To enable more young people to build assets, experts emphasize the need to strengthen income foundations alongside the promotion of investment systems. Akihiro Nomura, a senior researcher at the Nissay Foundation, analyzed that while intergenerational wage gaps are narrowing, asset formation has progressed, the financial asset gap within each generation has widened. He added that to prevent further widening of the gap within the same generation, measures such as equal pay for equal work between regular and non-regular employees are necessary.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.