What is the New NISA and how is it different from the old NISA?

From 2024, the system is permanent, with a lifetime tax-free limit of ¥18 million (¥12 million growth, ¥6 million tsumitate) and annual contributions up to ¥3.6 million. Gains and dividends are tax free in the account. The lifetime limit can be reused after sales, giving more flexibility than the old scheme.

How much should I invest monthly to reach ¥20 million?

At 3% returns, about ¥27,000 per month from age 30, ¥45,000 from 40, and ¥88,000 from 50 can reach ¥20,000,000 by 65. At 5%, the targets drop to roughly ¥18,000, ¥34,000, and ¥75,000. These are examples, not promises. Adjust for risk and income.

What is the 2027 Child NISA, and what can parents do now?

Japan plans to launch a Child NISA in 2027 for investing on behalf of minors. Final rules are pending. Parents can prepare by opening accounts, setting auto-transfers, learning low-fee fund choices, and drafting goals. Build savings now in your own account, ready to allocate once details are confirmed.

Which funds work best for New NISA: index funds or ETFs?

Both can work. Many investors pick low-fee, broad index funds or ETFs tracking TOPIX and global equities, plus high-grade bonds for stability. Favor expense ratios near 0.2% or lower, automate monthly buys, and rebalance annually. Choose accumulating or distributing classes based on your cash flow needs.

Global Market Insights

NISA Day February 13: New NISA surge and 2027 Child NISA in focus

ByDanny Kontos February 13, 2026February 13, 2026

On NISA Day February 13, Japan’s savers are asking whether the New NISA can close the ¥20 million retirement gap and how a 2027 Child NISA could help families invest earlier. We see steady inflows into low-fee index funds and ETFs, boosted by automatic monthly plans and tax-free compounding. Below we outline updated contribution examples by age, key account rules, and steps parents can take now. We also note the impact on brokers and asset managers, and how to build a simple, low-cost portfolio in Japan.