Japan looks to lift ban on advice for defined-contribution pensions

Japan looks to lift a longstanding ban on investment advice for defined-contribution pensions, Nikkei Asia reports today. The shift would allow plan providers and financial firms to offer guidance to retirement savers, a change that could influence how workers allocate assets. It comes as policymakers try to steer household cash into markets and improve retirement outcomes amid an aging population.

Nikkei Asia says officials are studying rule changes that would permit tailored advice within defined-contribution schemes, though specifics and timing have not been disclosed. The move would mark a break from current rules that limit providers to explaining products without recommending allocations, a framework critics say leaves many savers overly conservative. Watch for draft proposals from the government and regulators and initial industry reaction in the coming days. [Developing. This article will be updated.]