#Japan #Tokyo #Investment trends #Pension System #Money Forward ME

Understanding Asset Management with Money Forward ME

Money Forward Home, Inc. recently conducted a survey to analyze the utilization of defined contribution pension plans among users of their financial management service, Money Forward ME. This study aims to understand the role of defined contribution pension plans in personal asset formation and enhance financial literacy. The analysis was based on anonymized data collected from users during the signup process, ensuring individual identification was protected.

Key Findings

High Investment Trust Ratio with Active Investment Trend

Users of Money Forward ME, spanning ages 20 to 50, exhibit a notably high investment trust ratio exceeding 90% in their defined contribution pension accounts. This inclination towards investment is more pronounced among younger demographics, indicating a proactive investment approach compared to general market trends. Users in their 20s and 30s tend to have a higher ratio of investment trusts, while older users gradually shift towards safer asset choices, aligning with the principles of lifecycle investing.

Effective Use of Tax-Deferred Benefits for Steady Asset Growth

Average capital gains of over 30% highlight that Money Forward ME users have effectively utilized the tax-deferral benefits of their pension plans. The average balance in defined contribution pension accounts increases with age, reaching over 9 million yen for users in their 50s participating in corporate plans. This trend underscores the importance of long-term regular investments in building substantial retirement assets.

The Advantage of Corporate Plans and Future Potential

Average account balances in corporate defined contribution plans surpass those in individual plans, demonstrating the significant impact of employer contributions and payroll deductions on consistent asset accumulation. However, individual plans showcase a higher ratio of investment trusts, suggesting a potential for enhanced investment engagement through visibility in corporate plans.

Survey Overview

• - Survey Subject: Users of Money Forward ME's defined contribution pension plans.
• - Data Collection Period: Statistics were gathered as of July 23, 2025, from users who successfully linked their pension accounts since January 1, 2025.
• - Participants: Data analysis included 160,098 users between the ages of 20 to 59 with confirmed linkage to defined contribution pension accounts.

The data analysis was conducted internally, ensuring no external access by researchers or research institutions.

Expert Commentary

Mr. Toshiro Taki, Executive Officer and Fintech Research Institute Director at Money Forward Inc., stressed the growing importance of personal asset formation in light of Japan’s aging population and shifting macroeconomic factors. The survey indicates a strong understanding among Money Forward ME users of the benefits of defined contribution pension plans and their effective utilization. The reported trust ratio of over 90% and average gains of over 30% reveal the users' commitment to strategic investment and long-term asset growth. Notably, the average assets of over 9 million yen for corporate plan users in their 50s exemplify the effectiveness of long-term contributions.

Insights from the Survey

Strong Investment Orientation and Trust Ratios

With investment trust ratios exceeding 90% across various age groups, Money Forward ME users demonstrate a high propensity for investments compared to traditional users of defined contribution pension plans. Among the younger demographic, those in their 20s have a striking 97% investment trust ratio, suggesting a solid foundation for future asset growth.

Effective Utilization of Tax-Deferred Advantages

Users holding investment trusts in either corporate or individual plans achieve notable capital gains over 30%, effectively leveraging their pension's tax deferral properties. The increase in average account balances with age highlights the positive correlation between long-term investment strategies and asset growth.

Corporate Plan Growth and Individual Potential

Encouragingly, the average balance in corporate plans significantly exceeds that of individual plans, attributed to consistent employer contributions. The higher trust ratios in individual plans imply a readiness for improved investment engagement via visibility initiatives such as Money Forward ME.

Conclusion

The survey illustrates a promising landscape for defined contribution pensions among users of Money Forward ME, reflecting a proactive stance in investment behaviors and effective asset management. By facilitating a clearer view of their financial future, tools like Money Forward ME empower individuals to make informed decisions and enhance their financial literacy, ultimately supporting a richer retirement life.

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Note: The implications of these findings highlight the growing importance of financial education and investment strategies tailored to individual user needs, fostering a more financially literate society in Japan.

For more on money management and financial services, visit Money Forward.

About Money Forward Home, Inc.

• - Headquarters: Minato-ku, Tokyo, Japan
• - Founded: August 2024
• - Services: Various personal finance management solutions including Money Forward ME