Simple Q&A - iDeCo

[HeavyMetal]

Thanks a lot for rely!

Yeah government site is offline and says shall be back in October but I'm not sure whether it's last October maybe

According the link you provided it seems most brokers take 171 yen/month and 2052 yen/year.
The next question then - do they take this amount even if you have left Japan which means you can not add any money and can only "re-balance"? They still gonna take those couple thousands, every year?

Regarding pension, if it's 10 years, yeah maybe I should consider. Especially since 3 years are paid, already...
I was simply told it's minimum 20 years, before. Shall do some research. Thanks!!

[RetireJapan]

According the link you provided it seems most brokers take 171 yen/month and 2052 yen/year.

It's not 'and'. The yearly number is just 12x the monthly. You don't pay both.

If you are no longer paying in you pay a lower fee. You can see them here: https://www.dcnenkin.jp/search/commission.php (usually just 66 yen)

Pension eligibility used to be 25 years (300 months) but was reduced to 10 years (120 months) a few years ago.

[HeavyMetal]

It's not 'and'. The yearly number is just 12x the monthly. You don't pay both.

Thanks for reply!
Oh, right, Sure. It's "or''

So if I'm not paying in (am out of Japan) they shall regularly take 66yen/month from my account, for all the years I am absent, right?

Good to know about 10 years. Shall definitely dig into. Only, everyone around (Japanese) say there's no point in paying pension now cause it won't be paid back, because of demographic situation..

[RetireJapan]

Only, everyone around (Japanese) say there's no point in paying pension now cause it won't be paid back, because of demographic situation..

That is a pretty nihilistic and uninformed stance. I can't imagine any government not paying the pension benefits they promised to people. They wouldn't last six months in office.

Also the Japanese pension fund is enormous: https://www.gpif.go.jp/en/

I imagine the eventual pension might be slightly smaller than it is now, but I'm pretty sure we'll get one.

And the type of person that says it's not worth paying into the pension typically is not saving/investing themselves either. How are they planning to survive when they are 70? Or 80, 90?

[zeroshiki]

OP has also mentioned that they don't pay pension.

Regardless of the reason for not paying because you're unable to (exempt) or you choose not to (delinquent) if you don't pay pension, you are unable to open an iDECO account.

[HeavyMetal]

Is this iDeco rule on leaving Japan - "Can manage funds from abroad but not make contributions" - sort of "national", or "iDeco" rule?
Or it's just because it's estimated that one has to close all local bank accounts, on leaving Japan. Because if it's only that - then Prestia bank allows to keep account in Japan (with certain conditions)
Does that mean iDeco technically can be funded from overseas, then (via Prestia)?

[adamu]

Does that mean iDeco technically can be funded from overseas, then (via Prestia)?

iDeCo is based on your pension status. If you're paying into the pension, you can pay into iDeCo.

People voluntarily paying the pension as residents abroad can also pay into the iDeCo, but that option is only available to Japanese citizens.

[HeavyMetal]

iDeCo is based on your pension status. If you're paying into the pension, you can pay into iDeCo.
People voluntarily paying the pension as residents abroad can also pay into the iDeCo, but that option is only available to Japanese citizens.

Thanks for reply,
Yes I plan to join the pension system (thanks to this forum hehe )
So, you mean Japanese citizens (I am not, but my wife is, and she pays pension for years) are able to fund both national pension and iDeCo even being abroad?

[soundofsilver]

Hi all,

I finally got my iDeCo set up and am a bit confused (I'm using Rakuten, btw).

I have decided to go 100% in the 楽天・全世界株式インデックス・ファンド for the time being but after selecting a "100%" allocation to this fund, I am then taken to this screen:



I assume this list of funds in the lower half of the picture (cut off, but there are 32 in total) are the funds (or DC plans?) within the 楽天・全世界株式インデックス・ファンド - correct?

It is asking me to manually allocate a percentage to each of these funds that adds up to 100% (there is no seemingly no "auto allocate" button). Is this... normal? I had no idea I would need to do this. Should I basically just 適当に put about 3% in each so that it adds up to 100%? Have I selected the wrong thing? Wha?

Thanks in advance.

[TokyoBoglehead]

Hi all,

I finally got my iDeCo set up and am a bit confused (I'm using Rakuten, btw).

I have decided to go 100% in the 楽天・全世界株式インデックス・ファンド for the time being but after selecting a "100%" allocation to this fund, I am then taken to this screen:



I assume this list of funds in the lower half of the picture (cut off, but there are 32 in total) are the funds (or DC plans?) within the 楽天・全世界株式インデックス・ファンド - correct?

It is asking me to manually allocate a percentage to each of these funds that adds up to 100% (there is no seemingly no "auto allocate" button). Is this... normal? I had no idea I would need to do this. Should I basically just 適当に put about 3% in each so that it adds up to 100%? Have I selected the wrong thing? Wha?

Thanks in advance.

This is a form to rebalance I believe. Just put 100% for fund #31.

Yes it will automatically buy 100% fund #31 after you finish.

...

Imagine you already had holdings in your iDeco. This form would allow you to sell and rebuy without those funds leaving your IDeco. Huge plus to the system vs NISA.