Question about "kosenenkin"

[Clueless]

Hello!
I'm having some trouble figuring out my general pension benefits and wonder if someone could give me a general idea of what I can expect one year from now when I retire. A postcard I received a year ago said I have made 387 payments with koseinenkin (a total so far of 19,669,619). I guess it will be higher when adding in the past 12 and the next 12 months--to be a total of 411 months.

A different postcard I received said my basic pension will be 694,257 (possibly a bit more with the extra 24 months). If that's the yearly total, then it would be about 57,000 a month. Right?

My question is, how does one calculate the potential pension from the money that has been paid into koseinenkin.

Thanks in advance!

Clueless

[adamu]

If you sign up to Nenkin Net, it has a tool to generate your predicted monthly income based on your payments:

https://www.nenkin.go.jp/

Or you could go to your local pension office and they'll give you a printout of the most recent data.

I wouldn't try to calculate it myself - there's too many variables.

[RetireJapan]

You should also be receiving a nenkin teikibin that will show your projected current payout: https://www.retirejapan.com/blog/japan- ... date-2020/

[concerned]

For some reason did not receive my nenkin teikibin this year, despite my birthday in Jan. must phone them...

[adamu]

For some reason did not receive my nenkin teikibin this year, despite my birthday in Jan. must phone them...

You didn't check it online by any chance? I think they encourage you to go paperless the first time you log in.

https://www.nenkin.go.jp/n_net/n_net/ma ... .html#post

[concerned]

For some reason did not receive my nenkin teikibin this year, despite my birthday in Jan. must phone them...

You didn't check it online by any chance? I think they encourage you to go paperless the first time you log in.

https://www.nenkin.go.jp/n_net/n_net/ma ... .html#post

Thanks! for your comment, I could have indeed selected this, do not remember though.
Definitely do not want to make this paperless, best have a printed copy

[concerned]

"You didn't check it online by any chance? I think they encourage you to go paperless the first time you log in"
I called them this morning, and this was indeed the reason. They will send me the one for this year, which will take them a few months, and if I want to receive future updates by post I have to update my preference on the website

[mighty58]

A postcard I received a year ago said I have made 387 payments with koseinenkin (a total so far of 19,669,619). I guess it will be higher when adding in the past 12 and the next 12 months--to be a total of 411 months.

A different postcard I received said my basic pension will be 694,257 (possibly a bit more with the extra 24 months). If that's the yearly total, then it would be about 57,000 a month. Right?

My question is, how does one calculate the potential pension from the money that has been paid into koseinenkin.

As the amount will change based on your income, going online and checking projections for your specific case will be best.
However, as a rough guide, the kosei-nenkin part is calculated as the sum of:
a: avg. monthly income (not incl. bonuses) x 0.007125 x no. of months paid in prior to Mar.2003
b. avg. monthly income (incl. bonuses) x 0.005481 x no. of months paid in from Apr.2003 onwards

For ease of calcuation, if we assume a constant salary of ¥6m/yr (or 500,000/month) over your career, and based 411 months paid-in as of Mar.2022, that's 183 months before Mar.2003 and 228months after, then:
a: 500,000 x 0.007125 x 183 = 651,938
b. 500,000 x 0.005481 x 228 = 624,834
--> 651,938 + 624,834 = 1,276,772

This amount is based on receipt at age 65, and may be reduced or increased, depending on how early/late you start receiving the pension.
Add in the basic pension of 694,257, and I'd venture that you're looking at just under 2million/year for your pension.

(I think I've got those numbers basically right , but if any wise-heads spot any mistakes please correct me!)

[Clueless]

Thank you so much for the detailed answers.