FY2026 Possibility: Platinum NISA: A New Kind of NISA

[Hanimal]

A machine translation of an article regarding possible NISA changes in 2026.


Creation of NISA for the elderly?
Explanation of the monthly distribution type being considered by Platinum NISA!
It has been announced that the Financial Services Agency is considering the establishment of a NISA "Platinum NISA" for the elderly. Platinum NISA will handle "monthly distribution type mutual funds" that cannot be purchased under the current new NISA.

Platinum NISA was established in the background of the strong need of the elderly, such as "I want to use the dividend money for living expenses" and "I want to withdraw assets". However, it is important to note that mutual funds with monthly distributions carry the risk of depleting the principal.

What is NISA (Platinum NISA) for seniors?
NISA (Platinum NISA) for seniors is a tax-free system for seniors aged 65 and over who can use mutual funds that distribute monthly amounts tax-free. The tax reform for FY2026 is being considered so that Platinum NISA can be realized.
you receive a principal refund of 100,000 yen from a fund that invests 1 million yen, the principal amount will be 900,000 yen. It's just that you get back the money you invested, and you don't make any money.

In addition, mutual funds incur a fee called trust fees on a daily basis. It is also possible to have a situation where you are paying a cost and getting back the amount you invested.

The graph below compares the price trends of the Daiwa J-REIT Open (monthly distribution type), a monthly distribution type investment trust, and the iFree J-REIT Index, which does not issue distributions. Both are investment trusts managed by Daiwa Asset Management and linked to the Tokyo Stock Exchange REIT Index.




Under the current new NISA, it is not possible to purchase mutual funds that distribute monthly amounts. This is because if you receive distributions, your investment efficiency will deteriorate and you will not be suitable for long-term investment.

The current new NISA emphasizes the importance of "growing assets over the long term." If Platinum NISA is realized, it will expand the options for the "generation that is depleting assets."

Points to note about mutual funds with monthly distributions
As the name suggests, a monthly distribution mutual fund is a mutual fund that receives monthly distributions. It is a product that can meet the needs of "I want to use the distribution money for living expenses" and "I can't afford to use my pension alone", and it is especially popular with the elderly. However, it should be noted that the monthly distribution type has a risk of depleting the principal.

Just because you receive a distribution doesn't necessarily mean that you have more money or that you have made a profit. This is not the case. Distributions are paid from the assets of the mutual fund. Therefore, the amount of distributions paid reduces the assets of the mutual fund and lowers the price.

You can also sell your assets on a regular basis
One of the ways to destock your assets is to use a "regular sale service". Periodic sales are a method of selling assets little by little each month while continuing to operate.

If you have already purchased mutual funds under the new NISA, you do not need to buy a new mutual fund with monthly distributions just because the Platinum NISA starts. If you sell your existing mutual funds little by little, you can secure cash while continuing to operate.

If the investment performance is positive, the assets will also increase, so the asset life can be extended.

If you are reluctant to withdraw your financial assets on your own, the "Regular Sale Service" is convenient because you can automatically sell them in a fixed month. The regular sale service can be used with Rakuten Securities and SBI Securities.

SBI Securities' subscription service allows you to select not only "monthly" but also "odd-numbered months" and "even-numbered months". In addition, you can set different amounts as "bonus months" up to twice a year.

[zeroshiki]

Seems like a bad idea since the elderly will be even more prone to predatory sales tactics and products.

[Tsumitate Wrestler]

It seems so unnecessary as brokerages like SBI and Rakuten allow for scheduled monthly sales, that enable you to generate an income without specifically choosing a dividend fund. Pushing for this functionality at all NISA brokerages would seem more prudent then introducing another layer of complexity.

I was hoping for something better from the FSA, like preferential tax treatment of Japan listed stocks and dividends, like in Canada. I really wanted a Nihon frame for the NISA. Then it might actually be worth investing a bit in Japan, outside of the global weighting.

[RetireJapan]

Kind of like kabunushi yuutai (shareholder gifts), substandard product for uninformed investors?

[Tsumitate Wrestler]

Kind of like kabunushi yuutai (shareholder gifts), substandard product for uninformed investors?

Kabunushi yuutai are just dividends for those that don't understand how dividends work.