Hi Guys,
Basically question sums it up. I read that from 2019 instead of a lump sum you could convert a portion of what you've paid so far into UK pension credits.
I've been paying into the jp pension for roughly 6 years and will be leaving Japan this year (not back to the UK yet but maybe one day)
Does anyone have any advice on the pros and cons of either?
Much appreciated
JP Pension refund for UK residents - Lump Sum or Pension Credits
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CadmusLegion
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Beaglehound
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Re: JP Pension refund for UK residents - Lump Sum or Pension Credits
That’s interesting, I didn’t think there was any totalisation with the Japanese and U.K. pensions, but if it only started last year that would be why I hadn’t heard probably.
In your situation, much will depend on your U.K. state pension contributions thus far, and whether you are paying in voluntarily now or plan to in the future. Both systems require a minimum of 10 years of contributions to get anything at all, so no point in U.K. pension credits if you will end up with fewer than 10 years. You will also need to compare the amount of cash a lump sum will get you versus the potential U.K. benefits. Voluntary U.K. pension contributions, whether the cheaper class 2 or class 3, are much cheaper than Japanese ones, so despite the lump sum not paying out the full amount you have paid in, you may be better off taking the cash and reaching the full 35 years for the U.K. by other means, whether voluntary payments or NI should you return to the U.K.
In your situation, much will depend on your U.K. state pension contributions thus far, and whether you are paying in voluntarily now or plan to in the future. Both systems require a minimum of 10 years of contributions to get anything at all, so no point in U.K. pension credits if you will end up with fewer than 10 years. You will also need to compare the amount of cash a lump sum will get you versus the potential U.K. benefits. Voluntary U.K. pension contributions, whether the cheaper class 2 or class 3, are much cheaper than Japanese ones, so despite the lump sum not paying out the full amount you have paid in, you may be better off taking the cash and reaching the full 35 years for the U.K. by other means, whether voluntary payments or NI should you return to the U.K.
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RetireJapan
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Re: JP Pension refund for UK residents - Lump Sum or Pension Credits
The nenkin site hasn't been updated yet if there has been a change: https://www.nenkin.go.jp/international/ ... tatus.htmlCadmusLegion wrote: ↑Wed Oct 28, 2020 9:55 am Basically question sums it up. I read that from 2019 instead of a lump sum you could convert a portion of what you've paid so far into UK pension credits.
Couldn't find anything with a brief search on the UK side either. Do you have a source for this information?
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eMaxis Slim Shady
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CadmusLegion
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Re: JP Pension refund for UK residents - Lump Sum or Pension Credits
Hi guys,
thanks for the replies.
after looking into this further it sadly looks like the blog i originally read this on is was wrong. Whilst many other western European countries do have this option, UK citizens are offered elimination of dual coverage only.
source https://www.nenkin.go.jp/international/ ... tatus.html
thanks for the replies.
after looking into this further it sadly looks like the blog i originally read this on is was wrong. Whilst many other western European countries do have this option, UK citizens are offered elimination of dual coverage only.
source https://www.nenkin.go.jp/international/ ... tatus.html