Confusion about PMAC (Shigaku Kyosai) and DC
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Re: Confusion about PMAC (Shigaku Kyosai) and DC
All of you are awesome, thank you so much for the information! Applying for an account through Rakuten! Hoping my workplace can do the withholding option!
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Re: Confusion about PMAC (Shigaku Kyosai) and DC
The individual has no control over how much they pay (it's basically kosei nenkin with a lemon twist) so this is not a factor.
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eMaxis Slim Shady
eMaxis Slim Shady
Re: Confusion about PMAC (Shigaku Kyosai) and DC
Then I plain don't understand the limit of 12,000 yen. Can someone explain why they are capped?
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Re: Confusion about PMAC (Shigaku Kyosai) and DC
But other standard kosei nenkin payers get to contribute 23,000yen per month.captainspoke wrote: ↑Fri Dec 29, 2023 9:46 amIt's probably because it's a good system already, so there's less perceived need to give more tax breaks to those members. And ideco/nisa are still available.
RJ mentioned that this shigaku kyosai limit will be increased to 20,000 next year - is this to close this gap?
Aiming to retire at 60 and live for a while longer. 95% index funds (eMaxis Slim etc), 5% Japanese dividend stocks.
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Re: Confusion about PMAC (Shigaku Kyosai) and DC
That was speculation.beanhead wrote: ↑Fri Dec 29, 2023 11:05 amBut other standard kosei nenkin payers get to contribute 23,000yen per month.captainspoke wrote: ↑Fri Dec 29, 2023 9:46 amIt's probably because it's a good system already, so there's less perceived need to give more tax breaks to those members. And ideco/nisa are still available.
RJ mentioned that this shigaku kyosai limit will be increased to 20,000 next year - is this to close this gap?
(eg, I should keep my mouth shut.)
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Re: Confusion about PMAC (Shigaku Kyosai) and DC
iDeCo is designed to supplement pensions, and the limits reflect perceived need.
Public servants/kyosai members have the best pensions, so they get the lowest iDeCo contributions.
Kosei nenkin is pretty similar, so a bit more, and kokumin nenkin payers will get almost nothing, so they get the highest contribution limit of 68,000 a month.
Kyosai nenkin is not as good as it was before the change merging it with kosei nenkin, which might explain the upcoming rise from 12,000 to 20,000 in September.
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eMaxis Slim Shady
eMaxis Slim Shady
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Re: Confusion about PMAC (Shigaku Kyosai) and DC
Just to note that the new limit appears to take effect on December 1, 2024, according to the Ministry of Health, Labour and Welfare and various other sites.RetireJapan wrote: ↑Fri Dec 29, 2023 11:38 am
Kyosai nenkin is not as good as it was before the change merging it with kosei nenkin, which might explain the upcoming rise from 12,000 to 20,000 in September.
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Re: Confusion about PMAC (Shigaku Kyosai) and DC
Thanks for the correction! Did they change it? Could have sworn I had seen multiple sources saying SeptemberClearAsMud wrote: ↑Sat Dec 30, 2023 3:33 amJust to note that the new limit appears to take effect on December 1, 2024, according to the Ministry of Health, Labour and Welfare and various other sites.RetireJapan wrote: ↑Fri Dec 29, 2023 11:38 am
Kyosai nenkin is not as good as it was before the change merging it with kosei nenkin, which might explain the upcoming rise from 12,000 to 20,000 in September.
Will be more accurate going forward...
English teacher and writer. RetireJapan founder. Avid reader.
eMaxis Slim Shady
eMaxis Slim Shady