J401k for public servants

It wasn’t to be

So I just tried to apply for a J401k account, and part of the process involves getting your employer to sign off on it.

Well, looks like someone forgot to update the laws, so even though we are now paying into Kosei Nenkin, we are still not eligible for a J401k account. This includes national public servants, regional ones, and staff at private universities.

My pension payment this month went up by 3000 yen (about 10%) and benefits will be less generous than they were under the old Kyosai Nenkin, so I am super not happy about getting all the drawbacks and none of the benefits of Kosei Nenkin.

​Bummed.

7 Responses

  1. Lame. Just a thought, but what about an ISA account back home? Or is that contingent on residency?
    I know that for Americans, we can open retirement accounts back home if you do your (American) taxes the right way.

    1. Thanks Doug
      I’m not a UK taxpayer, so a UK tax-advantaged account wouldn’t do much for me 😉
      Also, as you pointed out regarding US accounts, the Japanese government would not regard a UK ISA account as tax-advantaged.
      It’s also pretty much impossible for non-residents to open financial acounts (thanks, Bush and Obama) now due to all the regulations and you do need to be a resident to open an ISA (they are now confusingly called NISA accounts, too).
      Really disappointed about the J401k though. Hope they change the law sometime soon.

  2. Faculty at private universities as well? I guess that’s because their 共済組合 usually have their own pension schemes (which might be benefiting from some sort of special rates or tax exemptions)?

    1. I think that used to be the case, but all the 共済 schemes have been rolled into kosei nenkin now. I get the feeling that the government (deliberately or otherwise) has not gotten round to revising the 拠出年金 laws in line with the changes to pensions.
      Unfortunately for us.

      1. Thanks for the reply. Who can we holler at about this? Do you think it worth joining a union to make noise about?
        Do you have any suggestions for alternatives in the meantime? Just go with an index fund for the time being?

  3. Just the usual: save up an emergency fund in cash, get NISA accounts for your entire family (all adults and children) and buy index funds/stocks/bonds in there, buy other investments if you have spare cash 🙂

    1. The problem with J401k is that almost no-one knows about it, so it is difficult to get people to complain about not having access.