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How well do you understand the pension system in Japan? For example, do you know how to calculate how much you will receive if/when you leave Japan?

31 Comments

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My J-wife asked the J-advisor at the pension place about her pension. The advisor started with, in Japanese of course, “Well, it’s difficult.”

They talked for about 15 minutes. Wife was completely at a loss. I picked up a pamphlet and asked if this would explain it.

The advisor said, “Even with that, it’s not easy to understand.”

So, to answer your question: Not at all.

11 ( +12 / -1 )

Even after three decades here and acquiring citizenship two decades ago, no one is ever able to explain exactly how the pension system works

You get a login ID and password issued from here:

https://www3.idpass-net.nenkin.go.jp/neko/Z06/W_Z0602SCR.do

It is very easy (as long as you can read Japanese). Then, you can log in anytime and see your pension record and your projected payout. It is very easy and straightforward. I have zero understanding of people who throw up their hands and say "Oh, it's so difficult and opaque!". Any questions about the pension can also be answered here from the Q&A or by contacting them directly.

absolutely nobody here knows.

This is just nonsense.

8 ( +10 / -2 )

As of 2019, the maximum annual payment is limited to ¥780,100 (approximately ¥65,000 per month), which assumes that you have contributed to the system for the full 40 years.

This is for kokumin-nenkin, not kousei-nenkin.

The former sucks. It is for self-employed people and people whose company doesn't offer them kousei-nenkin.

The latter sucks not so much. Myself and the above poster have the latter. Full contribution of kousei-nenkin gets you about 120,000 per month in retirement; more if you postpone until 70.

6 ( +6 / -0 )

Got a big state pension and a big company one coming (I've been at the company for 30+ years) so I'll be fine. Housing loan was paid off two years ago and kids are all through college and now working. Sweet.

5 ( +8 / -3 )

My wife tells me that some Japanese friends of hers do collect their pensions abroad. They have a link to a foreign bank set up from their J bank account. This pre-supposes that you have a bank account here in Japan.

One problem is that once a year a letter is sent to your Japanese address asking about family exemptions, or this, that or the other, in effect a check to make sure you are still alive, I guess.

One year I was abroad in Jan, Feb, March and had missed answering this letter, after which my pension was actually stopped, until I went through the process of reactivating it sometime in April...(?) My wife thinks that such letters can also be directed to an address abroad.

My feeling is that if you do return to another country in retirement, such details will need to be set up first, and maybe it would be advisable to keep a Japanese banking account active (technically illegal?) and to continue to visit every so often...(?)

4 ( +4 / -0 )

When I came to Japan, if you paid into the Japanese pension fund then later returned to your own country, you would forfeit everything you had paid so I never joined it.

3 ( +4 / -1 )

PS The Kosei-nenkin is a great thing to have but a bare minimum for living in Japan, and absolutely insufficient for living in a European capital city for example. It was far less than I had been told to expect when I was working. My daughter asked me recently if I am able to live within my pension, and I could only reply "I try". Actually for me it is not, without savings or supplemental income.

3 ( +4 / -1 )

Getting your pension paid overseas usually isnt a problem, you can find a list of countries that are available. If not, keep a bank account here and then transfer overseas.

I think there is also a 10 Year Rule- you need to contribute for at least 10 years before you can collect. BUT, many countries have a pension agreement with Japan that includes time overseas in the 10 year limit. You get credit for the time, not the contribution.

Used to be the only option was to get a refund of pension dues paid when you leave Japan. But that only covers 3 years of contributions max. JET teachers did this all the time 'back in the day'. For most of us, better to keep paying and get something at the end.

2 ( +2 / -0 )

Almost not at all, of course…How about first a little bit journalistically explaining it to us readers and then put such a question?

2 ( +3 / -1 )

The muppets at the city hall and the pension offices can never explain anything logically AND NEVER EVER exchange information between the agencies/branches involved so... I still don't understand it. This is one of the reasons I'm contemplating leaving Japan within the next 10 months.

2 ( +2 / -0 )

My buddy left Japan and left in charge of collecting the pension and sending it to him just a year ago...

Well. He left the country, notified the city hall he was leaving (moving out). Filled all the necessary paperwork, paid his taxes and the city knows he left me to collect and send the money.

Two months later I start receiving on my mailbox, for my buddie to rejoin the pension in Japan. But he left. Then I keep getting more forms so he rejoins.

Then after that, even tho he left and the city knows it, I start getting his payment slips. I called the city hall but they redirected me to the pension offices in Hachioji. I call them there but they redirect somewhere, where they tell me I can get the info on their official website. I called again cause the info I need is not on their website and then they mention to just ignore the payment slips. So I did.

Buuuut two weeks ago I get a notice on the mail, threatening that if the person (that doesn't live in Japan anymore) doesn't start paying what he "owes," when he starts claiming the pension at retirement age, he'll get 2man yen less every month.

And wanna know what the cherry on top is? My buddy already got his money from the pension, deposited by the J-government into his foreign bank account, two or three months ago.

2 ( +2 / -0 )

I think there is also a 10 Year Rule- you need to contribute for at least 10 years before you can collect.

That's very recent, isn't it? Made official around the same time as the consumption tax increase?

1 ( +1 / -0 )

I have one more year of payments in Japan to make the 10 years to qualify for the minimum pension. I will stop paying at that point. The returns are pitiful. Never wanted to join but they got me! Will get about ¥16,000 a month beer money from it. Also a full inflation linked UK pension and better still an exceedingly good trust fund!

1 ( +1 / -0 )

Well, my wife and kids are Japanese and we just bought a house here so I don't see myself going anywhere

0 ( +5 / -5 )

I regularly check my forecasted Japanese pension and UK pension online. With the house paid off, I can live on just these alone in retirement. I am due about 120,000 per month from each. For UK people, class 2 NI contributions are the best!

0 ( +3 / -3 )

The MyNumber system ostensibly will allow Shiyakusho town office and pension office to share information concerning pension contributions, but change does happen slowly...

0 ( +0 / -0 )

I asked three different departments in my company to explain how much pension I will receive, including the accounting department, and no-one had a clear idea. Just keep your head down and hope for the best, hey? Or assume you will get nothing, and start investing some of your salary every month.

0 ( +0 / -0 )

The Japanese pension system is going to collapse in 30-40 years time. Foreigners will be the first to suffer the wrath of this followed by the Japanese. Don’t rely on the Japanese pension system alone for your old age and save up now!!!

0 ( +2 / -2 )

Why don't you save and make your own pension for yourself. It's so easy.

-4 ( +0 / -4 )

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