Continue iDeCo or new NISA?

[banders]

I was wondering, apart from the fact that contributions to iDeCo are made before income tax, are there any other advantages or disadvantages of stopping iDeCo contributions (I assume that's possible) and investing all future money into the new NISA (assuming that total will be less than ¥18m by retirement)?

[zeroshiki]

The non-taxable part (going in and partially out) of iDeCo makes it incredibly desirable though. That's a pretty big plus.

The only advantage of NISA over iDeCo is the ability to pull your money out anytime you want but if your purpose of using NISA is for retirement (as it should be) then iDeCo will be the same (can only pull money out by 60 EDIT: wrong age originally).

Rough numbers, assuming you had 100k a year to invest in iDeCo, the tax savings there is 16200. 16200 a year for 20 years at 5% growth is 535k
The question to ask yourself then is whether the flexibility of NISA is worth 535k to you.

[adamu]

It depends on your situation, but probably best to keep the iDeCo if you are planning to retire in Japan. You can always put any extra into the NISA.

Some info here: https://retirewiki.jp/wiki/IDeCo

The only advantage of NISA over iDeCo is the ability to pull your money out anytime you want

Not the only one. It also doesn't come with any monthly deposit/withdrawal and maintenance fees. But the tax benefits of iDeCo are still much better for people who pay income tax. I think you have to carry on paying the iDeCo monthly fee even if you stop the payments (and some providers might even raise the fee).

[beanhead]

The only advantage of NISA over iDeCo is the ability to pull your money out anytime you want but if your purpose of using NISA is for retirement (as it should be) then iDeCo will be the same (can only pull money out by 65).

It is still 60, isn't it?

From Rakuten site:

個人型確定拠出年金（iDeCo）は、掛金を自分自身で運用しながら積み立てて原則60歳以降に受け取るしくみです。

[zeroshiki]

The only advantage of NISA over iDeCo is the ability to pull your money out anytime you want but if your purpose of using NISA is for retirement (as it should be) then iDeCo will be the same (can only pull money out by 65).

It is still 60, isn't it?

From Rakuten site:

個人型確定拠出年金（iDeCo）は、掛金を自分自身で運用しながら積み立てて原則60歳以降に受け取るしくみです。

My mistake. I wasn't sure if it was 60 or 65 and erred on the side of caution. I will make the correction.

[JimNasium]

It’s 60, but can leave it until 65 correct?

[RetireJapan]

It’s 60, but can leave it until 65 correct?

Earliest you can take out iDeCo contents is 60, latest is 75.