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Japan Pension and taxes

Posted: Tue Feb 13, 2024 1:41 pm
by douglasxwilliams
Hi all...

I became eligible to start receiving some pension/neknin benefits.
As a quick summary of my situation:
- i came to Japan from Seattle/USA in Nov-2020 for work
- i have been paying into the Japan pension since i started working (it comes directly from my check each month)
- because I was already over 60 at that time, my pension payments are pretty high each month.
- i am still working and i hope/plan on working for another year or two at least.
- my plan is to also remain in Japan until The End (depending on my PR Visa outcome) And, hopefully The End comes much later, rather than sooner! :)

My initial question is about how pensions are taxed, if at all in Japan. Will it be added to my current income/salary for taxes next year? One person told me that the pension and salary are considered different and maybe not taxed in Japan. I couldn't find anything online to support that claim. But, maybe it is true?

I will be getting a US social security benefit as well as my own personal retirement account (401K/IRA) at some point too.

thanks for any thoughts or even questions

Re: Japan Pension and taxes

Posted: Wed Feb 14, 2024 6:38 am
by Nancy
Yes it's all considered income. If you are still working you might want to delay receiving your pension.

Re: Japan Pension and taxes

Posted: Wed Feb 14, 2024 9:59 am
by douglasxwilliams
Thanks for the reply and info.

That is what I thought...as it works the same in the US.

My Japan pension distribution is going to be very, very small. Like less than 15,000 yen. So, maybe it won't matter as much as far as taxes. i