NISA rollover question

[Kanto]

With NISA ending in 2023, and New NISA running for only 5 years after that is anyone here considering switching? The New Nisa seems to hint that only the Tsumitate with exist after 2028.

That seems like the plan, but who knows what will happen between now and then. Suga seems fairly pragmatic and detail oriented, maybe he'll get them to fix NISA to remove the stupid time limits

I think that is unlikely. The NISA program is not widely seen as a success in Japan. It has mostly seen to benefit the upper-middle-class or wealthy.

The Tsumite NISA and iDeco are seen as simpler, and more approachable for the non-informed investor.

I personally think that if we want to see more people actually preparing properly for retirement these two options need to be expanded.

More people need to access them, and there needs to be a broader educational campaign.

[RetireJapan]

The Tsumite NISA and iDeco are seen as simpler, and more approachable for the non-informed investor.
I personally think that if we want to see more people actually preparing properly for retirement these two options need to be expanded.
More people need to access them, and there needs to be a broader educational campaign.

Completely agree. But even tsumitate NISA is too complicated. Japan looked at the British ISA when they created NISA, and then made it really complicated and put time limits on it.

In the UK you have an annual allowance that you can invest into your account, which is tax-free until you take it out. No time limits. Simple, easy, and it encourages people to save for the future. I wish Japan would go in that direction, it would be easier to explain and more effective.

iDeCo is a step in the right direction, but the contribution limits are too low.

[Kanto]

The Tsumite NISA and iDeco are seen as simpler, and more approachable for the non-informed investor.
I personally think that if we want to see more people actually preparing properly for retirement these two options need to be expanded.
More people need to access them, and there needs to be a broader educational campaign.

Completely agree. But even tsumitate NISA is too complicated. Japan looked at the British ISA when they created NISA, and then made it really complicated and put time limits on it.

In the UK you have an annual allowance that you can invest into your account, which is tax-free until you take it out. No time limits. Simple, easy, and it encourages people to save for the future. I wish Japan would go in that direction, it would be easier to explain and more effective.

iDeCo is a step in the right direction, but the contribution limits are too low.

You are right.

To be honest I wish we embrace the Canadian Model.

Tax-Free Savings Account + Retirement account.

https://en.wikipedia.org/wiki/Tax-free_savings_account
https://en.wikipedia.org/wiki/Registere ... vings_plan

Very simple.

[sutebayashi]

My theory is Japan's culture is one of taking into account various opinions and compromising, making it prone to introducing an array of complicated systems, trying to make various stakeholders happy, but the complications tend to act as a drag on potential.

I imagine the reason for the time limits on NISA is because the Ministry of Finance wants to leave the door open for taxing the profits on investments as much as possible, given the huge amounts of debt the country has been racking up.

Ah well, there's no perfect place!