Pension agreements between Japan and other countries.
Posted: Tue Nov 14, 2017 1:39 am
Hi,
I am from a European country with a pension agreement with Japan. I have tried to read and understand this agreement, but it is kind of difficult. I am assuming this agreement is common between Japan and other EU countries, so my question is, do you consider this when thinking about your future?
Personally I am 29 yo, so I am one of those who think in the future I might not have a decent public pension to live, therefore my interest in saving for the future. However, it is good to know I can choose between 2 pension systems, because you can always go to the one that will give you the most of it.
If I was to retire in 2017, I would obviously choose my home country, because pensions in Japan are very cheap compared to the ones in my home country, but then, I have tried to understand the calculation method when retiring in my home country having contributed in Japan. Any experiences/ideas?
The way your pension is calculated in my home country is 80% of your salary for your last 25 years contributing before retiring. Imagine I retire at 65. My monthly pension would be 80% of my monthly salary between when I was 40 at 65. Since I am in a very traditional Japanese company, by that time I will be making a good amount of money (More than 8M/year after 40yo). In my home country (South Europe, with a lower cost of living) the maximum public pension per month is 2573,70 € . I think that with my Japanese salary from when I will be 40yo to 65yo I could get the maximum public pension in my home country. Compared to the public pension in Japan, it is a lot more of money.
Is my way of thinking correct?
Also, what are the IDECO implication in case of going back to my home country and getting my public pension there?
I am from a European country with a pension agreement with Japan. I have tried to read and understand this agreement, but it is kind of difficult. I am assuming this agreement is common between Japan and other EU countries, so my question is, do you consider this when thinking about your future?
Personally I am 29 yo, so I am one of those who think in the future I might not have a decent public pension to live, therefore my interest in saving for the future. However, it is good to know I can choose between 2 pension systems, because you can always go to the one that will give you the most of it.
If I was to retire in 2017, I would obviously choose my home country, because pensions in Japan are very cheap compared to the ones in my home country, but then, I have tried to understand the calculation method when retiring in my home country having contributed in Japan. Any experiences/ideas?
The way your pension is calculated in my home country is 80% of your salary for your last 25 years contributing before retiring. Imagine I retire at 65. My monthly pension would be 80% of my monthly salary between when I was 40 at 65. Since I am in a very traditional Japanese company, by that time I will be making a good amount of money (More than 8M/year after 40yo). In my home country (South Europe, with a lower cost of living) the maximum public pension per month is 2573,70 € . I think that with my Japanese salary from when I will be 40yo to 65yo I could get the maximum public pension in my home country. Compared to the public pension in Japan, it is a lot more of money.
Is my way of thinking correct?
Also, what are the IDECO implication in case of going back to my home country and getting my public pension there?