Bubblegun wrote: ↑Thu Nov 09, 2023 1:07 am
OK. I might have misinterpreted the idea of paying extra as i was calculating to pay until I was 65 anyway.Giving me 30 years..ish. I thought i would be able to pay until i was 65, AAAAANNNNNNNDDDDD....add another 5 years.
Anyway thanks for that. I still can't believe with japans aging population, and demographic changes they can stop paying at 60 and take their pension. I expect that to change.
Pension recipients have to pay 40 years', 480 months' contributions (or qualify for exemptions) to qualify for the full Japanese National Pension, so if they paid consistently from 20 to 60, they will have qualified for the max. They can then wait until 65 to receive 100% of the Pension allocation based on their entitlement, or choose to take a reduced amount from anytime after age 60 to 65, or choose to take an increased amount from anytime after age 65 to 75.
Anyone who does not have the 40 years', 480 months' contributions (or exemptions) to qualify for the full Japanese National Pension by age 60, for whatever reason, can elect to pay additional Voluntary Contributions from age 60 to maximum 65, or to a maximum of 480 months' contributions to maximize their entitlement.
beanhead wrote: ↑Thu Nov 09, 2023 11:31 am
As you probably know, paying into the nenkin in some form also gives you the chance to invest in iDeCo as well.
As Beanhead said, it is possible to pay into iDECO, but this is only Tax Advantaged if you have a reasonable level of Taxable Income to offset the iDECO payments against to reduce Income Tax (You pay the Residual after the Government pays the amount you actually save from your Tax Bill at your Marginal and Residents' Income Tax Rates).
The income from iDECO will be taxed at your Marginal Income Tax Rate when you receive it in retirement.
If you have very low or no Taxable Income (very low or no Marginal Income Tax Rate) to offset by paying into iDECO, you would actually be better off paying the Post-Tax funds into, and maxing out NISA first, which doesn't have any tax advantage on the way in, but the proceeds of which are completely tax free on disbursement.