Please correct me if I am wrong, but
based on the calculation (3% interest rate), if you were to max out a tsumitate NISA account for the whole 20 years, you would get only about a 300man yen (2,9７0,000 yen) profit. This doesn't sound like it's THAT much. I guess in the end, you do get back that amount (300man) plus the amount you put in (800man), so in a way, it is something... but still...
Thanks for the link to the calculator. It helps me put things in perspective!
calculator.
Re: calculator.
I used the calculator to work out my kids possible fund in say 45 years.
Running at 20,000 yen a month. I took the total at the 45 year mark and then put it into the top starting box, and set the monthly deductions at say 250,000 thousand yen, (which won't be much in 40 odd years) and its quite surprising how long it will last, and it makes a mockery of the 20 million yen that the government say we need to survive until 100 years.
41million with a draw down of say 250,000 yen a month will last about 16 years.
that will take a person to 81 years old.
Ofcourse it may last longer if you draw down less, but i think 250,000 yen in 45 years will probably have 50% less purchasing power.( I think i'm being overly confident though).
With the current ponzy scheme the government runs, I can only see these options coming down the road.
1) increase immigration to increase the tax income.(checked)
2) Increase sales tax to European levels.(starting already, check)
3) Force every worker to take out a private pension similar to the US and UK. (IDeCo/NISA..check)
4) increase income tax. (unpalatable)
5 increase the pensionable age to UK levels, which I'm sure they're going to push for.( starting to nudge in that direction.Check)
But before they do that, they should make every single person pays the pension.Streamline the system and deduct it from every person pay cheque, and not bank account, which just seems clumsy and ripe for dodging payments.
Running at 20,000 yen a month. I took the total at the 45 year mark and then put it into the top starting box, and set the monthly deductions at say 250,000 thousand yen, (which won't be much in 40 odd years) and its quite surprising how long it will last, and it makes a mockery of the 20 million yen that the government say we need to survive until 100 years.
41million with a draw down of say 250,000 yen a month will last about 16 years.
that will take a person to 81 years old.
Ofcourse it may last longer if you draw down less, but i think 250,000 yen in 45 years will probably have 50% less purchasing power.( I think i'm being overly confident though).
With the current ponzy scheme the government runs, I can only see these options coming down the road.
1) increase immigration to increase the tax income.(checked)
2) Increase sales tax to European levels.(starting already, check)
3) Force every worker to take out a private pension similar to the US and UK. (IDeCo/NISA..check)
4) increase income tax. (unpalatable)
5 increase the pensionable age to UK levels, which I'm sure they're going to push for.( starting to nudge in that direction.Check)
But before they do that, they should make every single person pays the pension.Streamline the system and deduct it from every person pay cheque, and not bank account, which just seems clumsy and ripe for dodging payments.
Baldrick. Trying to save the world.