Retiring Early and the National Pension

[sytyue]

Hi everyone,

I have always known that if you worked at least 35 years, you will be eligible for the full basic pension here in Japan. But it wasn't until today that I was calculating my age and realized that if I do retire early, I won't be eligible for the full basic pension here.

Just wanted to know everyone's thought, would you delay your retirement just for the full pension (this would bring me closer to 60 than I would like) or forgo it and just retire early?

[goodandbadjapan]

Hi everyone,

I have always known that if you worked at least 35 years, you will be eligible for the full basic pension here in Japan. But it wasn't until today that I was calculating my age and realized that if I do retire early, I won't be eligible for the full basic pension here.

Just wanted to know everyone's thought, would you delay your retirement just for the full pension (this would bring me closer to 60 than I would like) or forgo it and just retire early?

Maybe I have misunderstood something, but I thought you would still pay kokumin nenkin even if you have stopped working, so it shouldn't really matter whether you retire early or not with regard to full payment. You may get less because you were getting kosei nenkin and then switch to kokumin nenkin upon stopping work, but I think you still pay kokumin nenkin right up until retirement age.

[Beaglehound]

It’s 40 years for full pension, not 35. But yes, you have to keep paying until you are 60, and can choose to pay in voluntarily beyond that (up to 65 if memory serves).

[beanhead]

It’s 40 years for full pension, not 35. But yes, you have to keep paying until you are 60, and can choose to pay in voluntarily beyond that (up to 65 if memory serves).

Currently up to 65, yes. Almost certain to be extended to at least 70 in the near future. iDeCo contribution period would also then be extended.

[Tkydon]

The Payability at 100% is from Age 65, based on the number of Months Total Contributions to that point.

Normally contributions stop at 60, but you can continue to contribute until 65, if you total number of months contributions is not up to the total 480 months.

You can, and if you do, elect to take the National Basic Pension earlier, from between 60 and 65, then there is a Discount Factor applied to the Payment, based on the number of Months Total Contributions to that point. See:

https://www.nenkin.go.jp/service/jukyu/ ... 21-01.html

So at 60, you would receive 100% - 24% Discount Factor = 76%...

You can, and if you do, elect to take the National Basic Pension later, from between 65 and 75, then there is a Premium Factor applied to the Payment, based on the number of Months Total Contributions to that point. See:

https://www.nenkin.go.jp/service/jukyu/ ... 21-02.html

So at 70, you would receive 100% + 42.0% Premium Factor = 142.0%%...