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© KYODOLower house passes bill allowing delayed pension payout
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kurisupisu
They’re hoping you’ll be dead by 75...
Dinesh
What about foreigners living in japan here ?? My country people don’t live till 75 years... :( .. my pension money also gone
dagon
Never let a crisis go to waste, good timing slipping this under the radar at this time. If you parse this, "allowing" means keep working, paying into the system and hopefully for the gov receive benefits for a shorter period of time and "More part-time workers and other nonregular workers will be able to enroll in the employee pension program under the envisioned law" means trying to rope more, young, non-salaried workers into paying into the plan.
Michael Machida
Allowed. What have we citizens allowed from our governments? Allowed? Let them eat cake all over again.
kohakuebisu
I was just trying to work out how long you'd have to live to benefit from deferring or not deferring your pension. However, Excel tells me that 1.007 to the power 120 (an increase of 0.7% a month for 10 years) is 2.309, an increase of 131%, not 84%. An 84% increase in 120 months is more like 0.5% a month.
I suspect it's still best to get as much free time as possible as early as possible when you are genki.
3RENSHO
The government are moving the goalposts, changing the rules before the match has ended.
runner3
My advice is retire and grab the money as fast as you can.
Ken
Dead end.
said it before and I will say it again,from slavery straight into your grave.Forget your nenkin.
thepersoniamnow
Should be unconstitutional!
rgcivilian1
So sorry for the 45 to 52 yrs old who have put in the time and looking for to a much needed promotion as the elder workers retire, but now the elders can stay longer prolonging the youngsters with no hope of advancement.
No Business
Might want to check your math there!
Peeping_Tom
Good.
titin
nope. You get 0.7% interest on the paid capital (the pension). The interest is not reinvested. Therefore:
0.7%x120months=84%
Normally, bonds, pensions and mortgages rates are calculated on the bare capital, without interests.
Ramzel
So besides for hourly paid jobs who exactly is going to hire these 70 plus year olds?
most companies still have their retirement age set at 60 and then they offer 1 year renewable contracts at as low as 1/3 of their original salary.
so these people are supposed to work from 60-75 at a fraction of what they were worth? Eg 5 years of work from 55-60 has the same earnings as 15 years from 60-75.
Kobe White Bar Owner
Nice timing when even the apathetic are less likely to demonstrate. I can’t believe what I just read. WTF
Ken Holcomb
Seems like some missed the point here. The new law does not require a person to wait until they are 75. It merely allows those that decide, based on their personal health and wealth issues, to wait until few years later to start receiving their benefits at a higher, (however slightly), rate.
The overused and extremely inappropriate term "slavery" is hyperbole at its worst. Actual slaves are not allowed to retire, nor receive benefits. Nor can they chose to leave their work at any time as is the case with virtually every citizen here. Dial it back a few clicks, folks.
Bugle Boy of Company B
And people wonder why I avoid the pension system like the plague! Yah, no thanks.
The pension system will either become insolvent, or we will simply see massive inflation, making your pension equally worthless.
No Business
I have always assumed, for many years now, that retirement (in any meaningful sense, such as our parents and grandparents have/had) will go the way of the dodo. I pay into the UK and Japanese pension schemes (as I am legally obliged to do here; unlike a lot of slackers!). I should get the full payout from both. With my house paid off in my fifties, I just hope I can survive on my pensions and meager savings. I'll probably drop dead at work one day in my seventies!
David Shawn Kanda
Good luck in being able to reach the age of 75 and still be able to work. Most of us won't make it unless we live highly regimented lifestyles.
YeahRight
And you're screwed out of everything if you die at 59. FWIW, I was supposed to die at 45, yet here I still am at 51. I don't believe I will ever be able to completely retire. I sure am not going to trust any government to help me out.
Xeno Man
In Japan, the rich is getting richer and the poor is getting poorer. Foreign rich people, not Japanese.
Koizumi and Abe repeated what Thratcher did to destroy the British economy. Trickle down economics 3.0
The pandemic is a perfect storm for Japanese big employers (mostly foreign controlled, nowadays) to lay off unwanted people in mass and dodge more taxes. The bill is a part of that trickle down economics.
kohakuebisu
Thanks for that titin So no compounding then.
Break even for deferral is 10 divided by 0.84 or approximately 12 years past 75, making it 87.
Average life expectancy for a 65 y.o. male in Japan is 19.3 years, so 84.3. Like with salaries, I'd imagine 65% don't make it that far and the average is bumped higher by the extremely long lived. For most people, this deferral sounds like a raw deal.
https://www.rehouse.co.jp/senior/detail02.html
As for why people continue to work, I think an increasing number are still supporting their family when they hit 65. Our youngest was born when I was 43, so I'll still be paying if she goes to four year college.
I have every intention of living simply and frugally once I get past say 75. I doubt many people will still have the energy and gusto to properly enjoy a lot of money at that age.
Nator
How about introducing some kind of system to allow self-employed, temporary workers and freelancers to pay into the pension without it being ridiculously expensive? Even if it resulted in reduced benefits upon retirement. Like the UK has.
Meiyouwenti
I would like to correct one inaccuracy. Under the current system, people aged 60 to 64 are subject to reduction if the combined total of their average monthly wage and their monthly pension benefits exceeds 280000 yen.
Cricky
The fraud just continues anyone know what a politician gets? Bet it's enough to support 3 people.
kyushubill
Well the LDP are taking care of their base, brill cream using, polyester suit wearing, tooth sucking oyaji salary men. Now they can bully their young kohai well into their 70s.
Kumagaijin
Oh please, the elder workers have vast experience and knowledge and during times of economic and financial uncertainty like we're experiencing today, our elders are needed more than ever. Face it, they are worth every penny you're not getting from that raise (-;
Goodlucktoyou
My retired friend gets ¥65000 a month.
my dogs food bill is ¥35000+ a month.
Goodlucktoyou
Most politicians have privileged backgrounds. Tried googling Akie Abe’s wealth, but google won’t tell me.
Bugle Boy of Company B
sounds like your friend. Should be sure not to get a dog.
Vince Black
The pension system in japan is a massive scam anyway, anyone with enough sense would avoid it at all costs
skylark1966
Pension schemes, Insurance schemes, credit card schemes, part-time vs full-time employment schemes....they are/wre all schemes to suck the stupid into believing they were just as smart s smart people. Going on 40 years. Everyone used to think they were stupid....then everyone thought they were average, then everyone thought they were above average...now everyone tinks they are smart....stupid became smart...and everyone is entitled...the Corona virus puts things in perspective. Our grandparents were much smarter than us. Less educated, but smarter. We are reaping the whirlwind and although it sucks, it is unfair and we hate it, in an odd sort of way I see my grandfather, who fought in WW2 looking down and saying...."I told you so." Maybe we deserve it. Just maybe.
wtfjapan
here's an idea make it 100yrs then give everybody 500% of the yearly pension, you'll be surprise just how many aim for that age.
wtfjapan
my dogs food bill is ¥35000+ a month.
seems like you need a smaller dog
i@n
It's voluntary, you decide if you want to delay the pension
smithinjapan
Guaranteed this was passed knowing they'll save money on at least a certain percentage of those people, who have payed into the system for more than 50 years, will die before they see a dime. TIJ.
cleo
Sounds like your friend paid only into the kokumin nenkin, and that not for the full 40 years.
If you're paying only the kokumin nenkin and expect to have to live off your pension when you retire, you need to start paying into a private pension scheme, as young as possible.
What are you feeding him, gold nuggets?
A 12kg bag of Science Diet lasts a 35kg dog at least a month, and costs less than ¥6,000. Add in a few quality treats, chews, toys and vet insurance and you would still come in well under ¥10,000.
Invalid CSRF
JeffLee
I think many of the posters don't really understand the measure. It's a liberalization move, giving pension contributors more choices
"Widening" the goalposts is a more appropriate description.
Vince Black
The Japanese pension system is criminal, get your pension from overseas if you need to but never ever pay into the Japanese one. You’ll never see your money again and if you do, it’ll be a pittance
No Business
Some of us prefer not to break the law, then have to face the repercussions years later.
Vernon Watts
Americans work to live.
Europeans just want to live, not work.
Japanese live to work.
Vince Black
I see you are new to japan. nobody is legal binded to pay into any pension scheme. They can intimidate people into paying but that’s it, the staff at the Japan pension office even confirmed that .
cleo
日本に「在住」する人全てに年金加入の義務があります。
Everyone resident in Japan is under an obligation to join a pension scheme.
20~60歳の人は全員無条件で「国民年金」に加入の義務があり
Everyone between the ages of 20 and 60 is obliged to join the kokumin nenkin scheme.
支払いが数ヶ月滞ると督促状・催告状が届き、電話や戸別訪問で支払いを催促されます。それでも支払いをしなければ、財産を差し押さえられて強制徴収されることも。
If payment falls several months overdue, you will be sent a reminder/demand for payment. Telephone calls or visits to your home will be made, urging you to pay. If you still fail to pay, your assets will be placed under distraint and collect will be made forcibly.
Yup, having your assets seized is pretty intimidating.
https://shirofune.jellyfish-g.co.jp/others/pension-system
Vince Black
LOL
provide proof of that EVER happening. Perhaps you are new to japan, most likely you are, how many Japanese people actually pay pension do you think. Have all those people had their assets removed? Big girl pants on, stop being intimidated
cleo
lol I've been in Japan probably longer than you have been on planet Earth.
All the ones I know, apart from the sengyo shufu who get a free ride. And students, who can apply for a dispensation until they start earning.
Most of the people in my immediate neighbourhood are past the age of paying in, they're on the receiving end. And since they've all paid in, they're all receiving.
Invalid CSRF
Jen Garci
Fwiw a lot of senior japanese that decided to live in places like chiang mai, cebu are living upper middle class lifestyle with 200000 yen a month that Japan gives them. The pension system in Japan is not so bad compared to what you get in other countries.
Peeping_Tom
"Allowing"
"Oh goodie, we're "allowed" to slave away until we die."
Yes; allowing.
Meaning you'll do it if you WANT TO. No one will force you.
Much better than our UK's Department for Work and Pensions proposals to increase the State pension age to 68.
The difference?
1) Japan allows you to delay collection.
2) The UK will force you to delay collecting.
And then some complain about being "allowed" to delay.
Jeeeezus Christ.