Why is there so much confusion around pensions?

[Tsumitate Wrestler]

If I had been able to invest the tens of millions of yen I have paid into the national pension system, the result would be a whole lot more than the forecasted retirement payment ¥2,000,000/yr.

On the other hand, most people need to be forced to save, so I do think a mandatory deduction is necessary. Matching from a company sweetens the pot too.

Just read an article about China in NYT:

China’s Young People Are Giving Up on Saving for Retirement

Citing a rapidly aging society, difficult job market and uncertainty about the future, some young people are rejecting the idea of saving for old age.

You cannot really blame young Chinese, it's very bleak.

1.Confucianism family dynamics and communist communal ideology are incompatible with the more modern. capitalistic China.

2. The population crisis they face makes Japan's look like a walk I'm the park.

https://www.bbc.com/news/world-asia-china-68595450

This image says alot....

[Deep Blue]

So is there anyone here who has a corporate DC pension which allows them to invest more than 25,200 a month?

[goran]

So is there anyone here who has a corporate DC pension which allows them to invest more than 25,200 a month?

Upto 55000.
Monthly contribution of company of 0.55% of annual salary
Employee can contribute the difference upto 55000. (for salaries of less than 10m JPY)

For employees with over 10m JPY salary, 55000 JPY goes to DC. Surplus amount goes to companies own employee retirement fund.

[Deep Blue]

Thank you goran.

Do you have this cash balance element too, which is an amount on top of the DC contribution remains sat in cash?

[goran]

Thank you goran.

Do you have this cash balance element too, which is an amount on top of the DC contribution remains sat in cash?

I think that is the DB component. I had this at my previous work, where I had no say about the investment asset for the DB side of things. And because they had this DB component, the DC limit was only up to about 27000 JPY.

My current employer doesn't have this. Full 55000 is into DC and the employee is free to choose the asset. (from selected ones)

[Deep Blue]

But I don’t have a Defined Benefit pension?

As far as I understand I’m content using to the standard national pension, to a DC scheme (25,200 a month) and a cash balance scheme (8% of monthly salary - 25,200 yen).

It’s crazy because the vast majority of the 8% of left in cash.