Where the 200,000 USD personal reserve comes from ?

In 2019, Japanese government released a caution to the people: Look you may end up with no- reserve for your after retirement life, get yourself prepared with the sufficient fund of 20 mil JPY.

This is so-called 20 mil issues in Japan. I have been wondering where this figure comes from. During this Corona Pandemic, when I was reading “Psychological Economics” by Kenichi Omae (https://www.kohmae.com/en/) , and found out the answer.

Mr. Omae mentioned that according to his calculation, Government’s accumulated debt would be 2000 trillion JPY, including invisible amount. This is 20 mil JPY burden per person. This book was written in 2007 but Mr. Omae had already anticipated what king of message Japanese government would release. Actually they did in 2019.

He also demonstrated how the U.S government shared such information, educated people, and turned themselves into a strong financial country. Thus, we may not be remained too pessimistic. We still have some opportunities. If we commit ourselves and work hard to master investment skills, we would be able to solve the huge debt issues. I will keep you readers updated and share Mr. Omaes’s views in my future columns.