Delaying pension

[beanhead]

Sorry to jump in here.
So we’ve back paid the 10 years. So I think that will give me a total of 30 years. Does this mean I can go and pay another 5 years when I’m 60,putting me at about the 35 year worth of contribution mark?

Yep. You can pay into kokumin nenkin from 60. (16,000 yen and change per month at the moment)

https://www.nenkin.go.jp/international/ ... nsion.html

This is if you are not working and still paying into the shakai hoken at that point. Even if working part-time from 60, a job which pays shakai hoken would increase the amount you get from your pension.

[Tkydon]

If you reach 60, you can go to the Pension Office and apply to pay voluntary contributions to get your number of contributions up by another 60 months... You cannot pay voluntary contributions past age 65.

Sorry to jump in here.
So we’ve back paid the 10 years. So I think that will give me a total of 30 years. Does this mean I can go and pay another 5 years when I’m 60,putting me at about the 35 year worth of contribution mark?

Yes, normally they stop receiving or sending you bills for Pension Contributions at age 60, but you can elect to continue paying Voluntary Pension Contributions monthly to age 65 to get your Qualifying Months up.

https://www.nenkin.go.jp/international/ ... nsion.html

See 'Voluntary Coverage' and 'How to Enroll for Voluntary Coverage' sections.

"The following persons can enroll in the National Pension system on a voluntary basis;

(1) Registered residents* of Japan aged 60 to 64 years
(2) Japanese citizens aged 20 to 64 years who reside in a foreign country
(3) Persons* born on or before April 1, 1965, aged 65 to 69 years who have not satisfied the minimum qualification period

* Excluding foreign nationals staying in Japan with specific visa (medical stay or long stay for sightseeing). Such foreign nationals cannot apply for voluntary coverage.

If you are subject to (1), (3) above, and wish to enroll voluntarily, you need to apply for enrollment at the municipal office of your place of residence."

[Bubblegun]

OK. I might have misinterpreted the idea of paying extra as i was calculating to pay until I was 65 anyway.Giving me 30 years..ish. I thought i would be able to pay until i was 65, AAAAANNNNNNNDDDDD....add another 5 years.
Anyway thanks for that. I still can't believe with japans aging population, and demographic changes they can stop paying at 60 and take their pension. I expect that to change.

[beanhead]

OK. I might have misinterpreted the idea of paying extra as i was calculating to pay until I was 65 anyway.Giving me 30 years..ish. I thought i would be able to pay until i was 65, AAAAANNNNNNNDDDDD....add another 5 years.
Anyway thanks for that. I still can't believe with japans aging population, and demographic changes they can stop paying at 60 and take their pension. I expect that to change.

The system is based on 40 years of payments from 20 until 60. As you wrote, this does not match the current reality for many people.
It is likely to change in the future, but we can't control that of course.
All you can do, if you are not working/paying shakai hoken after 60, is pay in the extra.
It is possible that in the future we will be able to pay in from 65 to 70, again if not paying into shakai hoken at that stage via a job.

As you probably know, paying into the nenkin in some form also gives you the chance to invest in iDeCo as well.

[Tkydon]

OK. I might have misinterpreted the idea of paying extra as i was calculating to pay until I was 65 anyway.Giving me 30 years..ish. I thought i would be able to pay until i was 65, AAAAANNNNNNNDDDDD....add another 5 years.
Anyway thanks for that. I still can't believe with japans aging population, and demographic changes they can stop paying at 60 and take their pension. I expect that to change.

Pension recipients have to pay 40 years', 480 months' contributions (or qualify for exemptions) to qualify for the full Japanese National Pension, so if they paid consistently from 20 to 60, they will have qualified for the max. They can then wait until 65 to receive 100% of the Pension allocation based on their entitlement, or choose to take a reduced amount from anytime after age 60 to 65, or choose to take an increased amount from anytime after age 65 to 75.

Anyone who does not have the 40 years', 480 months' contributions (or exemptions) to qualify for the full Japanese National Pension by age 60, for whatever reason, can elect to pay additional Voluntary Contributions from age 60 to maximum 65, or to a maximum of 480 months' contributions to maximize their entitlement.

As you probably know, paying into the nenkin in some form also gives you the chance to invest in iDeCo as well.

As Beanhead said, it is possible to pay into iDECO, but this is only Tax Advantaged if you have a reasonable level of Taxable Income to offset the iDECO payments against to reduce Income Tax (You pay the Residual after the Government pays the amount you actually save from your Tax Bill at your Marginal and Residents' Income Tax Rates).
The income from iDECO will be taxed at your Marginal Income Tax Rate when you receive it in retirement.

If you have very low or no Taxable Income (very low or no Marginal Income Tax Rate) to offset by paying into iDECO, you would actually be better off paying the Post-Tax funds into, and maxing out NISA first, which doesn't have any tax advantage on the way in, but the proceeds of which are completely tax free on disbursement.

[Bubblegun]

OK. I might have misinterpreted the idea of paying extra as i was calculating to pay until I was 65 anyway.Giving me 30 years..ish. I thought i would be able to pay until i was 65, AAAAANNNNNNNDDDDD....add another 5 years.
Anyway thanks for that. I still can't believe with japans aging population, and demographic changes they can stop paying at 60 and take their pension. I expect that to change.

It is possible that in the future we will be able to pay in from 65 to 70.
As you probably know, paying into the nenkin in some form also gives you the chance to invest in iDeCo as well.

All i can say is..."Bugger that". Working until 70. LOL. Well maybe part time would be ok. They might as well make most people work to death. LOL.

[Bubblegun]

Anyone who does not have the 40 years', 480 months' contributions (or exemptions) to qualify for the full Japanese National Pension by age 60, for whatever reason, can elect to pay additional Voluntary Contributions from age 60 to maximum 65, or to a maximum of 480 months' contributions to maximize their entitlement.

OK, So lets say I'm ten years short,of the full entitlement at 60, I can go into the office and pay the pension until im 65,(16000 blha blah yen) that gets me 35 years, but I would still be 5 years short of the full 40 but I want to get to the 40 year mark, So I can pay an extra TOP UP during those 5 years. Making 10 years in total. So instead of BACK PAYING, I'm just doubling down instead of 16000 yen i'd be paying 32,000 yen.?

[RetireJapan]

So I can pay an extra TOP UP during those 5 years. Making 10 years in total. So instead of BACK PAYING, I'm just doubling down instead of 16000 yen i'd be paying 32,000 yen.?

No.

[Bubblegun]

So I can pay an extra TOP UP during those 5 years. Making 10 years in total. So instead of BACK PAYING, I'm just doubling down instead of 16000 yen i'd be paying 32,000 yen.?

No.

Thank you that's cleared up. So basically we can pay up to 65.(if we don't collect at 60). For me then, there really is no "CATCH UP".LOL as i planned on paying until 65.

[Tkydon]

So I can pay an extra TOP UP during those 5 years. Making 10 years in total. So instead of BACK PAYING, I'm just doubling down instead of 16000 yen i'd be paying 32,000 yen.?

No.

Thank you that's cleared up. So basically we can pay up to 65.(if we don't collect at 60). For me then, there really is no "CATCH UP".LOL as i planned on paying until 65.

But, if you don't go and specifically apply to pay, they'll stop collecting contributions at 60.