My case (financial/work situation)

[TokyoWart]

I would encourage you to explore getting a job unrelated to teaching English. I know there are a lot of English teachers here who have been successful in running their own schools but the salaries and benefits at large companies can be very attractive. I am also seeing more foreigners who are not fluent in Japanese working at international companies here. I just came back from a social gathering of about a dozen gaijin, none of whom work in teaching, and one of the topics of conversation was how quickly the 45% income tax rate kicks in in Japan so I suspect they are all doing very well financially.

[Deep Blue]

I agree there are a lot more foreigners working in professional services here now than there was twenty or even ten years ago.

Maybe it’s because we live in Shibuya (sample bias!) but there are a lot of mid-late career non-Japanese speaking gaijins working at GAFA companies.

I don’t know how many of them made the jump from English teaching though, most seem to have come from overseas as intra-company employees to start with.

[William]

In my case, I did an MBA in Tokyo, which helped me to leave the teaching gig.

[kuma]

Blimey, that is reassuring.
I ran the numbers with ChatGPT on just getting the minimum 10 years uk for both of us plus the fuka kokumin in Japan, and it looks like approx 3 million yen a year, which is only a bit less than our total salaries combined now as it is.
So full uk pension would definitely be a huge benefit to us in retirement, but even 20 years contributions would also do nicely.

Yeah, you're going to be well positioned here.

I’m not really sure how ideco works but I was under the impression I couldn’t do it or it wouldn’t be worth it for my current situation. I don’t know how true that is though and don’t know anything about it.

Others have mentioned some of the workings and benefits of iDeCo.

It may be something you look at a little down the road (6-24 months?) if there's a lot on your plate now and limited capacity to contribute.

A big benefit in your shoes is that you have the potential to be in the system for a long time. Each year of contributions beyond 20yrs is almost doubly as valuable as each year before 20yrs of contributions in terms of the tax free allowance. For example, were you to contribute for 30yrs, the first 20yrs (combined) would give you a tax free allowance of 8m, and the subsequent 10yrs (combined) would give you a tax free allowance of 7m. (https://retirewiki.jp/wiki/IDeCo#Tax_tr ... f_benefits)

Also there's the benefit of compounding.

And the benefit in reduction of taxes. iDeCo contributions reduce your taxable income and therefore your tax is reduced; 5,000/month contributions could end up effectively being 3,000/month out of your disposable income and 2,000/month in tax savings, dependent on your tax circumstances.

The 15m tax free allowance may seem a pie-in-the-sky number right now, but it's well within your grasp. 5,000/month contributions x 30yrs x market growth and the compunding effect thereof could easily land you upwards of 5m by retirement, and if those contributions were to incrementally increase, then the effect on the size of the pot would be huge.

Great that you're already contributing to NISA. As and when you can afford it (and when ready for the bureacracy of an application), 5,000/month into iDeCo could be a good move, with contributions to be increased in the future.

[KCLenny]

Blimey, that is reassuring.
I ran the numbers with ChatGPT on just getting the minimum 10 years uk for both of us plus the fuka kokumin in Japan, and it looks like approx 3 million yen a year, which is only a bit less than our total salaries combined now as it is.
So full uk pension would definitely be a huge benefit to us in retirement, but even 20 years contributions would also do nicely.

Yeah, you're going to be well positioned here.

I’m not really sure how ideco works but I was under the impression I couldn’t do it or it wouldn’t be worth it for my current situation. I don’t know how true that is though and don’t know anything about it.

Others have mentioned some of the workings and benefits of iDeCo.

It may be something you look at a little down the road (6-24 months?) if there's a lot on your plate now and limited capacity to contribute.

A big benefit in your shoes is that you have the potential to be in the system for a long time. Each year of contributions beyond 20yrs is almost doubly as valuable as each year before 20yrs of contributions in terms of the tax free allowance. For example, were you to contribute for 30yrs, the first 20yrs (combined) would give you a tax free allowance of 8m, and the subsequent 10yrs (combined) would give you a tax free allowance of 7m. (https://retirewiki.jp/wiki/IDeCo#Tax_tr ... f_benefits)

Also there's the benefit of compounding.

And the benefit in reduction of taxes. iDeCo contributions reduce your taxable income and therefore your tax is reduced; 5,000/month contributions could end up effectively being 3,000/month out of your disposable income and 2,000/month in tax savings, dependent on your tax circumstances.

The 15m tax free allowance may seem a pie-in-the-sky number right now, but it's well within your grasp. 5,000/month contributions x 30yrs x market growth and the compunding effect thereof could easily land you upwards of 5m by retirement, and if those contributions were to incrementally increase, then the effect on the size of the pot would be huge.

Great that you're already contributing to NISA. As and when you can afford it (and when ready for the bureacracy of an application), 5,000/month into iDeCo could be a good move, with contributions to be increased in the future.

Thank you.
I’ll definitely look into it.

[KCLenny]

Also, I’ve been having a few job interviews and seem to doing well in 2 particular ones. I’m not sure which would be a good choice though (they both seem good!).

Job 1
Salary minimum guarantee of 230,000 yen a month regardless of actual hours but with the potential be a lot more depending on hours worked.
5 days a week but no inherently set schedule. Could be busy, but might not, some work would be every week but some might be only for 2 weeks.
Commuting time is variable. Needing to go from Kyoto to Shiga, and from Kyoto to Osaka and sometimes maybe other places.
Shakai hoken is included.
Teaching English to mainly adults, and especially business English to companies, also includes some ALT type work once or twice a week. Seems to be quite variable, which seems interesting to me. Would possibly be a good way to stave off getting bored if work is different every month. Sometimes helping with company/client interviews, recording audio scripts, correcting email correspondence.

Job 2
First year salary is 250,000 a year, second year 270,000 and third is 280,000
Hours are set, Tuesday to Friday 8.5 hours, Saturday 8.25 hours. Commuting time is around 40 minutes one way. But always the same location.
There is a possibility of a future transfer to a nearby place that would make my commute time 5 minutes one way.
Sometimes need to work extra days for events and overnight stays for like camp events apparently.
Shakai hoken included.
Teaching English mainly to kids around 6 years old. But I think they do from 0 to adults. Seems like it’s 80% kids classes though. A lot more singing dancing playing, more casual style, T-shirt is ok. More possibly a lot more physically/mentally draining.

I don’t know if either job has any bonuses.
So far, which seems better, if any?

And what, if anything, should I ask each job about to get clarification on?

[Yossarian]

And what, if anything, should I ask each job about to get clarification on?

It's hard for us to say exactly what's better. Did they seem like good people to work for/with? What's their time off policy? Do you like getting on trains? Would YOU rather teach adults or kids? Etc etc

But, actually earning more is probably better than potentially earning more, right?

Also, as other people have mentioned. Don't forget you don't have to teach English forever. There are lots of opportunities out there. Might just take a bit of work to get them.

[Moneymatters]

And what, if anything, should I ask each job about to get clarification on?

Having had “challenging” work environments in the past, I’d actively encourage people to prioritize the environment. Basing a decision off a single interview would be like marrying someone on the back of a one night stand whilst on holiday…
You can’t assume full transparency from the interviewer so, if successful, request to have a chat with people already doing the job. Ask them how easy it is to get a day off, how likely are they to receive bonuses, OT Pay.. If they refuse that request. Well. That’s a message right there.
Meetings with peers have been part of my hiring process for decades as I have nothing to hide..

I would echo that if changing, focus on what is it on the way towards. What portable skills or resume skills are you building in the new role or is it going to be funding your weekend MBA..

And whilst I have no personal experience in the education space I wondered if there might be an overnight stay component with the first position. That’s just from your description.. But I’m probably wrong on that.

[KCLenny]

Thanks for the replies.
Of course, I’m not making any concrete decisions just after the initial interviews. I’m having more conversations with both companies, so I can ask more questions and get a better feel for both of them.
I’m strongly leaning towards the business one, as opposed to the kids one, purely because I don’t know if I can keep up the energy to teach kids all day every day, 5 days a week, just for the “better salary”.
The minimum safety net of the first job seems quite attractive, gives me a bit of wiggle room if business is slow, so the amount for me, is essentially liveable.
As for the environment, that’s a good point, and that’s another reason I’m leaning to the business English, because it is essentially dispatch to companies to teach short course for x period of time. So there’s limited time. Meaning if it’s bad, it’s only bad for a short time. And the diversity of experiences and places and styles seems quite attractive for future opportunities.
I think there is a small possibility of overnight stays with it too, but that’s business stays. Not staying with 100 kids and constantly being ready to help said kids. I feel that’s quite a different demand/expectation. A night in a hotel room is fine. A night with 100 kids at a camp, not so much.

Thanks for the question suggestions. Very good point about talking to other staff.
As for other jobs, I do actually like teaching English. I know this forum is full of people and the internet in general is full of people telling everyone to get out. And yeah I’d love to work in something like agriculture/gardening. But that’s going to be in the future. My current company is on the way out, and these are the best options right now. So once I’m there, then I can start planning something else. Especially the business one gives me that flexibility because I might have some weeks with a bit of downtime, so can invest in other skills etc.

[Yossarian]

I’m strongly leaning towards the business one, as opposed to the kids one, purely because I don’t know if I can keep up the energy to teach kids all day every day, 5 days a week, just for the “better salary”.

Makes sense. Enjoyment and stress are huge factors, too. I did a similar job when I was younger. Was sent to a bunch of places teaching. Lessons were fun. Commuting wasn't. Just something for you to be aware of.