Maximum age extended to 65?

[Zoomtokyo]

Saw on NHK last night that the ruling coalition has included a provision in a tax reform outline to extend the current max. age of IDeCo contributors from 60 to 65. This is big news for me, as I turn 59 early next year and haven’t enrolled due to the current age limitation.

The reform is slated for fiscal 2020. However, I haven’t seen much info on the net, so any further clarification would be
appreciated.

The same package also includes a provision to extend and otherwise liberalize NISA. So this all seems big news for us on this forum.

[Krolontra]

I have researched this matter and found that the age extension is decided already by the parlament, but will be in force from the time the ministry has issued the necessary implementing rules. Estimates are that this will take time and that it can be expected that the extension will come into force in 2021 or 2022. In addition, no matter how old you are, if applicable, enroll. It is not difficult and any yen you invest is deductable from you taxes. A deal you cannot refuse, even if it only lasts 1 year. I also guess, if the extension is in force, people between 60 and 65 who have stoppt payments in the meantime will at least be entitled to restart their contributions. I even hope, we will become entitled to make payments for the years lost dur to late implementation. But that may be a faint hope.

[Wales4rugbyWC23]

I really wish they would increase the amount you can put in your IDECO having about 800,000 yen annually really is not that much if you compare it internationally. I know you can invest in additional pension schemes but that gives quite a miserly fixed return. Why not make it the same value as the NISA allowance?

[RetireJapan]

Ha! My annual allowance is 144,000.

I would *kill* for 800,000

[Wales4rugbyWC23]

Ha! My annual allowance is 144,000.

I would *kill* for 800,000

But you have a University pension and taishokukin. In the UK the annual limit is 40,000 pounds.

[RetireJapan]

But you have a University pension and taishokukin. In the UK the annual limit is 40,000 pounds.

True, true. But uni pensions are now just normal kosei nenkin. And I *like* investing tax-free with pre-tax income

[Zoomtokyo]

Thanks for the info. Application was made last month and now awaiting approval. Hopefully, I'll get 6 years worth.

[Zoomtokyo]

May 1, 2022, is the date when the extension goes into effect, according to Toyo Keizai

https://toyokeizai.net/articles/-/356908

More of a good thing.

[Krolontra]

May 1, 2022, is the date when the extension goes into effect, according to Toyo Keizai

https://toyokeizai.net/articles/-/356908

More of a good thing.

Late, but better late than never.
Thanks for the info.
By the way, people who became 60 in the meantime and
had to stop payment will be able to restart their payments
if they did not request payment of a lump sum or a pension
in between.