In estimating the number of households and household asset levels, NRI classified all Japanese households into five segments* of HNWIs (high net worth individuals), affluent, mass affluent, upper mass retail, and mass retail based on the amount of net financial assets owned (total value of financial assets owned minus debts), such as savings and deposits, equities, bonds, investment trusts, single-premium life insurance and annuities, etc. NRI's estimate revealed that the combined size of the affluent segment holding net financial assets worth ¥100 million or more but less than ¥500 million and the HNWI segment holding net financial assets of at least ¥500 million consisted of 1,217,000 households as of 2015 (Figure 1). More specifically, there were 1,144,000 households in the affluent segment and 73,000 households belonging to the HNWI segment.
Figure 1:Number of Households and Household Asset Levels as Classified by Net Financial Assets Held
- (Note)Estimated by NRI based on the Annual Statistics Report of the National Tax Agency, the National Survey of Family Income and Expenditure of the Ministry of Internal Affairs and Communications, Vital Statistics of the Ministry of Heath, Labour and Welfare, the Household Projections for Japan of the National Institute of Population and Social Security Research, the Tokyo Stock Index TOPIX by Tokyo Stock Exchange, Survey of 10,000 Consumers (Financial Edition) by NRI, and Survey of Affluent Segment by NRI.
Compared with 2013 figures, the number of households belonging to the affluent segment rose by 20.0%, while the number of those belonging to the HNWI segment went up by 35.2%, amounting to a combined increase of 20.9%. The total number of households in these segments was roughly 210,000 higher than the figure of 1,007,000 households seen in 2013, which had been the peak since the year 2000, when NRI began making estimates using similar methods.
The growth in the numbers of households belonging to the affluent and HNWI segments likely resulted from the rise in stock prices between 2013 and 2015. This rise allowed many in the mass affluent segment who held net financial assets worth ¥50 million to ¥100 million and the affluent segment who held net financial assets worth ¥100 million to ¥500 million as of 2013 to grow the value of their assets, and enabled them to move into the affluent or HNWI segment.