Entering semi-retirement - what now?

[hawkmoon99]

Hi all,

I'm writing to share my recent transition into semi-retirement, a journey that's both exciting and a bit daunting. After nearly 20 years in my previous job, I've found myself at a crossroads in my mid-50s. The job market isn't overly welcoming at my age, especially for positions similar to what I had. So, I'm taking this unexpected turn as an opportunity to reshape my life.

I've decided to venture into starting my own business – a blend of online and limited in-person fitness and bodybuilding coaching. This pivot is not just a career change; it's turning a lifelong hobby (and once serious pro aspiration) into my new profession.

Financially, I'm in a stable position. My savings and investments, bolstered by my severance package, should comfortably support me and my family for the next 30+ years, considering a 4% withdrawal rate. Living in Japan, with its lower cost of living, definitely helps make this possible.

However, there are some practical concerns. My immediate worry is covering my juminzei (residential tax) for the remainder of the year, which is expected to be high. Not critical, but unpleasant. I'm also transitioning to kokumin kenko hoken (national health insurance) and kokumin nenkin (national pension), ensuring these essential services continue uninterrupted.

While I focus on building my coaching business, I'll still keep an eye on the job market and have some recruiters engaged. I plan to apply for employment insurance and will search for specific jobs. If something interesting and suitable comes up, I might consider it. But for now, my heart is set on this new path.

I'm curious to hear from others who have transitioned into early semi or full retirement. Have you turned a hobby into your new work? How has the experience been for you?

Cheers!

[apologies, posted while viewing wrong subforum!]

[RetireJapan]

Congratulations! Quite similar to my own situation

One minor thing -you may be able to stay on your former employer's health insurance for up to two years. This can be quite a lot cheaper (at least for the first year) as health insurance payments are based on the previous year's income and kokumin kenko hoken is often more expensive.

[Moneymatters]

Hi all,

I'm writing to share my recent transition into semi-retirement, a journey that's both exciting and a bit daunting. After nearly 20 years in my previous job, I've found myself at a crossroads in my mid-50s. The job market isn't overly welcoming at my age, especially for positions similar to what I had. So, I'm taking this unexpected turn as an opportunity to reshape my life.

How are the family handling this change in direction?

I'm aiming to be in a similar situation soon. Aside from the weight training stuff that is. If I pick something up and find myself going "urghh" I'm putting it down right away and asking for help or leaving it where it is.
Kei car resting on a bunch of nuns. Nope. They're just gonna have to wait..

Would be very keen to hear updates on how the transition works out for you. Especially around the admin side of things.
I'm assuming you'll just go self-employed for the new venture rather than starting a Godo-kaisha or KK(which would be overkill)..

when you apply for unemployment insurance you might want to keep quiet about doing any work that generates income.
Maybe defer the start of drawing income.

you could have 270 days of unemployment coming your way. Depending on income this could clear most/all of your resident tax obligations..
https://ten-navi.com/hacks/article-546-45454

[hawkmoon99]

Congratulations! Quite similar to my own situation

One minor thing -you may be able to stay on your former employer's health insurance for up to two years. This can be quite a lot cheaper (at least for the first year) as health insurance payments are based on the previous year's income and kokumin kenko hoken is often more expensive.

Thank you! And I greatly appreciate what you have shared about your journey into this time of life as well.

I've heard this more than once, but I think it might be more expensive for me. On my monthly paycheck my portion of HC was 36,800 yen.
I'm estimating my kokumin kenko hoken might be cheaper (?) Is there anyway to find out before going through the routine at city hall?

[RetireJapan]

I've heard this more than once, but I think it might be more expensive for me. On my monthly paycheck my portion of HC was 36,800 yen.
I'm estimating my kokumin kenko hoken might be cheaper (?) Is there anyway to find out before going through the routine at city hall?

You may be unpleasantly surprised. You can get a quote from city hall if you go in and explain the situation.

[hawkmoon99]

Hi all,

I'm writing to share my recent transition into semi-retirement, a journey that's both exciting and a bit daunting. After nearly 20 years in my previous job, I've found myself at a crossroads in my mid-50s. The job market isn't overly welcoming at my age, especially for positions similar to what I had. So, I'm taking this unexpected turn as an opportunity to reshape my life.

How are the family handling this change in direction?

I'm aiming to be in a similar situation soon. Aside from the weight training stuff that is. If I pick something up and find myself going "urghh" I'm putting it down right away and asking for help or leaving it where it is.
Kei car resting on a bunch of nuns. Nope. They're just gonna have to wait..

Would be very keen to hear updates on how the transition works out for you. Especially around the admin side of things.
I'm assuming you'll just go self-employed for the new venture rather than starting a Godo-kaisha or KK(which would be overkill)..

when you apply for unemployment insurance you might want to keep quiet about doing any work that generates income.
Maybe defer the start of drawing income.

you could have 270 days of unemployment coming your way. Depending on income this could clear most/all of your resident tax obligations..
https://ten-navi.com/hacks/article-546-45454

Thanks for the reply

Wife is very supportive.
She knows the feedback and demand I can generate on the business side as she's witnessed my reception in public, in gyms, and at contests.
I have a few irons in the fire to help cultivate attention and increase visibility. I have been bodybuilding, both recreationally and on stage for over 40 years. Not picking up heavy things regularly would make my nervous system melt down. I often get a little agitated on vacations...

Right now I will not go after GK, but I might in the future to make business deductions. Everything bodybuilding and coaching related could be written off including contest tickets, traveling to client's shows, admin software and systems, education, etc.

I will be treating my business aspirations as a hobby for now. When it grows into looking realistic I will drop the unemployment support. I am eligible for 330 days at the max payment of 8,490 per day from what I have seen. Thank you for the link.

[ChapInTokyo]

Congratulations! Quite similar to my own situation

One minor thing -you may be able to stay on your former employer's health insurance for up to two years. This can be quite a lot cheaper (at least for the first year) as health insurance payments are based on the previous year's income and kokumin kenko hoken is often more expensive.

Thank you! And I greatly appreciate what you have shared about your journey into this time of life as well.

I've heard this more than once, but I think it might be more expensive for me. On my monthly paycheck my portion of HC was 36,800 yen.
I'm estimating my kokumin kenko hoken might be cheaper (?) Is there anyway to find out before going through the routine at city hall?

Maybe you can find some info on the net? For Setagaya-ku for instance, I see that kokumin kenko hoken contribution per month would be higher than 36,800 yen for people earning more than 3,100,000 yen per year, I suppose maybe because you need to pay 100% of the contribution rather than only 50% with the company contributing the balance.

https://www.city.setagaya.lg.jp/mokuji/ ... mihyou.pdf

[Tkydon]

However, there are some practical concerns. My immediate worry is covering my juminzei (residential tax) for the remainder of the year, which is expected to be high. Not critical, but unpleasant. I'm also transitioning to kokumin kenko hoken (national health insurance) and kokumin nenkin (national pension), ensuring these essential services continue uninterrupted.

See the comments I made in two other threads about the costs you can expect to have to pay for the next 2 years, at least...

https://www.retirejapan.com/forum/viewt ... 967#p37967

and

https://www.retirejapan.com/forum/viewt ... 994#p37994

[hawkmoon99]

Congratulations! Quite similar to my own situation

One minor thing -you may be able to stay on your former employer's health insurance for up to two years. This can be quite a lot cheaper (at least for the first year) as health insurance payments are based on the previous year's income and kokumin kenko hoken is often more expensive.

Thank you! And I greatly appreciate what you have shared about your journey into this time of life as well.

I've heard this more than once, but I think it might be more expensive for me. On my monthly paycheck my portion of HC was 36,800 yen.
I'm estimating my kokumin kenko hoken might be cheaper (?) Is there anyway to find out before going through the routine at city hall?

Maybe you can find some info on the net? For Setagaya-ku for instance, I see that kokumin kenko hoken contribution per month would be higher than 36,800 yen for people earning more than 3,100,000 yen per year.

https://www.city.setagaya.lg.jp/mokuji/ ... mihyou.pdf

I'll have to find out. According to that PDF my responsibility would be over 1,000,000 annually.

[hawkmoon99]

However, there are some practical concerns. My immediate worry is covering my juminzei (residential tax) for the remainder of the year, which is expected to be high. Not critical, but unpleasant. I'm also transitioning to kokumin kenko hoken (national health insurance) and kokumin nenkin (national pension), ensuring these essential services continue uninterrupted.

See the comments I made in two other threads about the costs you can expect to have to pay for the next 2 years, at least...

https://www.retirejapan.com/forum/viewt ... 967#p37967

and

https://www.retirejapan.com/forum/viewt ... 994#p37994

This is brilliant thank you. I'll follow that thread as it seems to parallel my situation in many ways.
Key difference is I think it very unlikely I go back to fulltime corporate work.