How to refuse to take Japanese pension

[Tokyo35]

Hello all

I have been living and working in Japan for close to 4 decades. When I retire I will most likely leave Japan with a nice nest egg and (as of now) I am planning to cancel my Permanent Residency.

Along with that I am thinking (not decided of course) to get out of dealing with Japanese bureaucracy by NOT taking a pension (the latest postcard tells me I would get about a million yen per YEAR).

Obviously I KNOW that it sounds completely crazy and ridiculous and 20 other adjectives as well but I am starting this thread for information only to see how one would go about it.

I would like any information on how to AVOID taking the pension so let's not get tons of replies on how ridiculous it is. There are plenty of other threads on how great the pension is and how important it is to pay into it and get the payments back.

Thank you in advance,
Martin

[captainspoke]

Just don't sign up? --i.e., don't submit the paperwork.

But you do know that it can be sent/collect when overseas, don't you?

[Tkydon]

If you move to a country with a Full Social Security Totalization Agreement, you can claim Social Security or National Pension in that country based on your contributions to the Japanese Pension System. You wouldn't have to deal with Japanese bureaucracy. They would do that for you.

If you cancel your Permanent residency when you leave, you will have to pay the Exit Tax; if your overseas taxable assets amount to over Y1 Oku, you have to mark to market, and pay taxes as if you liquidated them on the day you leave, and pay 20.315% Capital Gains Taxes on the total taxable gains.

If you cancel your Permanent residency when you leave, you will also have to close all Japanese Accounts as you will no longer be entitled to keep them open. Again, you'll liquidate all Japanese assets, and pay 20.315% of any taxable gains, as well as paying any outstanding National Taxes for the final year and Residents' Taxes for the final two years in Japan.

You should speak with a qualified professional to understand your total tax liability if you choose to relinquish your PR when you leave.

[Tsumitate Wrestler]

Hello all

I have been living and working in Japan for close to 4 decades. When I retire I will most likely leave Japan with a nice nest egg and (as of now) I am planning to cancel my Permanent Residency.

Along with that I am thinking (not decided of course) to get out of dealing with Japanese bureaucracy by NOT taking a pension (the latest postcard tells me I would get about a million yen per YEAR).

Obviously I KNOW that it sounds completely crazy and ridiculous and 20 other adjectives as well but I am starting this thread for information only to see how one would go about it.

I would like any information on how to AVOID taking the pension so let's not get tons of replies on how ridiculous it is. There are plenty of other threads on how great the pension is and how important it is to pay into it and get the payments back.

Thank you in advance,
Martin

Donating once you receive it would probably be a lot less work, IMO.

You may end up creating more work for yourself and others by refusing it while present in Japan.

However, if you clean out your accounts, leave no debt, punch your card at the airport, and do not leave a forwarding address, I think that will take care of itself.

[RetireJapan]

You have to apply to start receiving the pension. If you never apply they will be very happy not to pay it to you.

(you also need to reapply every couple of years in order to continue receiving it I believe -to prevent people sticking granny in the closet and living off her pension forever)

[captainspoke]

...
(you also need to reapply every couple of years in order to continue receiving it I believe -to prevent people sticking granny in the closet and living off her pension forever)

Hmm. I don't think it's age-related(?!), but I can't remember having done anything like that.

[RetireJapan]

Hmm. I don't think it's age-related(?!), but I can't remember having done anything like that.

Starts from 75: https://www.nenkin.go.jp/oshirase/topic ... 21-17.html

[Tokyo35]

Thanks for all replies so far.

Just to deal with some of the comments:

- It is interesting that all I need to do is simply not apply for it and my question is answered. It is easier than I expected. Thanks Retire Japan!

- I am from the Rep.of Ireland and I have never heard or read that there is any linkage which would allow me to take an Irish pension in lieu of a Japanese one.

- I have been paying into the system for close to 26 years (in the 1980s officials looked shocked that a foreigner even wanted to join the National system). I joined in late 1997 when I decided to apply for PR. So it is too to not join.

- Regarding this mysterious (to me anyway) Exit Tax, my understanding is that when I sell my stocks I will pay the capital gains tax of 20.315% and then whatever is left over I will send out of Japan as a cash transfer without any more Exit Taxes. Is there some other nasty surprise waiting in store for me?

Martin

[Wales4rugbyWC23]

Thanks for all replies so far.

Just to deal with some of the comments:

- It is interesting that all I need to do is simply not apply for it and my question is answered. It is easier than I expected. Thanks Retire Japan!

- I am from the Rep.of Ireland and I have never heard or read that there is any linkage which would allow me to take an Irish pension in lieu of a Japanese one.

- I have been paying into the system for close to 26 years (in the 1980s officials looked shocked that a foreigner even wanted to join the National system). I joined in late 1997 when I decided to apply for PR. So it is too to not join.

- Regarding this mysterious (to me anyway) Exit Tax, my understanding is that when I sell my stocks I will pay the capital gains tax of 20.315% and then whatever is left over I will send out of Japan as a cash transfer without any more Exit Taxes. Is there some other nasty surprise waiting in store for me?

Martin

Moving back to Ireland? Is there a state pension totalisation agreement between Ireland and Japan?

I think apart from crypto currencies, how retiree expat Brits in Japan get their hands on the British state pension is the most popular topic for discussion on this forum...

[Tkydon]

https://www.nenkin.go.jp/international/ ... atus.html4

https://www.mhlw.go.jp/stf/seisakunitsu ... glish.html

https://www.mhlw.go.jp/topics/bukyoku/n ... and-ie.pdf

https://www.nenkin.go.jp/international/ ... index.html

https://www.nenkin.go.jp/international/ ... eland.html

"6. Irish benefit amonut (sic) calculation under the Agreement

The amount calculated by deeming a coverage period under the Japanese system to be a coverage period under the Irish system, which is prorated according to the duration of a coverage period under the Irish system."

"10. Income tax on Japanese pension benefits in Ireland

If you receive Japanese pension benefits in Ireland, your Japanese benefits are subject to income tax in Ireland and exempt from Japanese income tax.
To be exempt from Japanese income tax under this rule, you must submit two completed "Application form for Income Tax Convention (Form 9)" to the Headquarters of Japan Pension Service. You can download the form from 新規ウインドウで開きます。the Japanese National Tax Agency website.(external website)"

Japan Tax Exemption Form
https://www.nenkin.go.jp/shinsei/jukyu/ ... les/02.pdf



Exit Tax
https://retirewiki.jp/wiki/Exit_tax