How does the retirement plan work in Japan?
- All individuals between the ages of 20 and 59 residing in Japan must enroll in the National Pension System, regardless of their nationality.
- If you are sent to work in Japan from a country that has a social security agreement with Japan for a period of less than 5 years, you may be exempt from mandatory membership in the Japanese public pension system.
If you leave Japan and move to another country, you may be entitled to receive your full retirement benefits.
- If a foreign citizen leaves Japan and goes to live abroad, they may be eligible for full compensation if they meet the requirements, such as having contributed for 6 months or more.
- If you have difficulty paying the contribution amount, you can request an exemption.
Payment
- The contribution to the national pension insurance is 17,510 yen per month.
Projected retirement benefits (for fiscal year 2025)
- Retirement due to age: people who have contributed for more than 40 years and meet the other conditions are entitled to receive the benefit from the age of 65. The annual amount is 831,700 yen (69,308 yen per month).
- If the reason is disability, illness or accident (Level 1): the annual retirement benefit will be 1,039,625 (86,635 per month).
- In case of death: the pension amount will be paid to the spouse or children. The annual amount is 1,071,000 (monthly amount of 89,250).