RetireJapan

Kanto wrote: ↑Fri Apr 16, 2021 5:10 am
2-3 million seem pretty low.

I think he meant this plus nenkin. So if your nenkin is 1.5-2M per year, then 2-3M on top of that is just about basic living.

Kanto wrote: ↑Fri Apr 16, 2021 5:10 am Sorry, are these figures Millions of yen per year in spending during retirement?

Yep. My wife and I live pretty simple lives, and 2-3m yen per year from investments, on top of our nenkin and other pensions, with a paid off home would be enough for us to live on. We would not be able to do everything we wanted to, but we would have food, some leisure, and perfectly comfortable lives.

Sorry, the original post wasn't very clear. I don't consider the value of pensions when planning for the future (they are just going to be pleasant bonuses).

RetireJapan wrote: ↑Fri Apr 16, 2021 7:13 am

Kanto wrote: ↑Fri Apr 16, 2021 5:10 am Sorry, are these figures Millions of yen per year in spending during retirement?

Yep. My wife and I live pretty simple lives, and 2-3m yen per year from investments, on top of our nenkin and other pensions, with a paid off home would be enough for us to live on. We would not be able to do everything we wanted to, but we would have food, some leisure, and perfectly comfortable lives.

Sorry, the original post wasn't very clear. I don't consider the value of pensions when planning for the future (they are just going to be pleasant bonuses).

Gotcha! It was my fault, I missed the context.

As someone who is self-employed, I also do not factor in the measly nenkin I will accrue when I retire.

I do factor in iDeco though, which is substantial in comparison. (about ８２万 a year).

RetireJapan wrote: ↑Fri Apr 16, 2021 4:49 am
I found it useful to think about three levels of spending in retirement:

2-3m, which with a paid off home and some income from nenkin, etc. would be enough to live on
4-5m, which would let us live a similar life to the one we have now, with some international travel and supporting family
6m+ which would let us basically do whatever we want without thinking about money

Sorry, just to clarify, for these numbers do you mean each or a total for you as a couple?

Gareth wrote: ↑Fri Apr 16, 2021 10:36 am Sorry, just to clarify, for these numbers do you mean each or a total for you as a couple?

As a couple! I think about our portfolio as a big unified thing, even though we have separate accounts in our own names.

Having no mortgage, having one car (no loan), and rarely eating out, our family of 4 has basically required 3,000,000-4,000,000/year.

So I think 2-3 million per year would be enough for my wife and I, as long as we budgeted, and mostly travelled domestically.

The above does not include the big education expenses we have had/are having, such as study abroad (about 1.5 million/yr), and uni tuition (1.5 million/yr).

I am hopeful we can afford a lot of international travel in the future though, if get around 3 million in nenkin as a couple, then another 3-5 million in investment income.