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Re: Spending in retirement poll
Posted: Sun Jan 09, 2022 12:35 pm
by TJKansai
The idea we only need funds until 77 (male average in USA) or 81 (male, Japan) is not a given.
I checked out two life expectancy calculators today. One had me at 87, the other at 94.
https://www.blueprintincome.com/tools/l ... ll-i-live/
Re: Spending in retirement poll
Posted: Sun Jan 09, 2022 1:03 pm
by RetireJapan
It's kind of non-intuitive, but life expectancy goes up every year until you die.
If you can get your portfolio to escape velocity though, where it goes up more than you want to spend, problem solved
Re: Spending in retirement poll
Posted: Sun Jan 09, 2022 10:04 pm
by Tokyo
The idea we only need funds until 77 (male average in USA) or 81 (male, Japan) is not a given.
I checked out two life expectancy calculators today. One had me at 87, the other at 94.
https://www.blueprintincome.com/tools/l ... ll-i-live/
Thanks for posting. Apparently I am likely to hold on until 95, and my wife 96. But given that we live and expect to remain in Japan, that’s likely to be an underestimation!
Re: Spending in retirement poll
Posted: Sun Jan 09, 2022 11:09 pm
by captainspoke
RetireJapan wrote: ↑Sun Jan 09, 2022 1:03 pm
It's kind of non-intuitive, but life expectancy goes up every year until you die.
...
Maybe a doctor/actuary will check in on this, but the older you get without dying, the more you have avoided those things that bring life expectancy calculations down.
Some lifespan calculators can be generous/optimistic. Nobody wants to do a questionnaire and find that they only have 5-7 years left. Their purpose is usually to get the person to recognize the impact of, and to change certain habits/behaviors--diet, exercise, smoking/drinking, monitoring/health checks, etc.
Re: Spending in retirement poll
Posted: Tue Jan 11, 2022 11:19 am
by Bubblegun
I have actually no idea, but I will have
1) pathetic Japanese pension as I would have only accumulated 25 years worth. ( I managed to back pay 10 years which was a big help, and apart from delaying the pension) anyone got any ideas?
2)A UK pension from 67.
3) A very very tiny amount from the army and the NHS.
I see all the advantages now of why some families in Japan have 3 generations living together.
Re: Spending in retirement poll
Posted: Tue Jan 11, 2022 2:10 pm
by beanhead
Bubblegun wrote: ↑Tue Jan 11, 2022 11:19 am
I have actually no idea, but I will have
1) pathetic Japanese pension as I would have only accumulated 25 years worth. ( I managed to back pay 10 years which was a big help, and apart from delaying the pension) anyone got any ideas?
Not sure if it helps much, but you can voluntarily pay in past the mandatory age of 60. At the moment it is possible to pay until 65, but that will probably be raised in the future to 70 or even later (?)
This also allows you to continue to pay into iDeCo for a bit longer.
I asked about backpaying missed years of my Japanese pension but I was not able to. So I will also not get to 40 years. Hoping that the iDeCo will make up the difference to a certain extent.
Re: Spending in retirement poll
Posted: Wed Jan 12, 2022 2:55 pm
by Bubblegun
beanhead wrote: ↑Tue Jan 11, 2022 2:10 pm
Bubblegun wrote: ↑Tue Jan 11, 2022 11:19 am
I have actually no idea, but I will have
1) pathetic Japanese pension as I would have only accumulated 25 years worth. ( I managed to back pay 10 years which was a big help, and apart from delaying the pension) anyone got any ideas?
Not sure if it helps much, but you can voluntarily pay in past the mandatory age of 60. At the moment it is possible to pay until 65, but that will probably be raised in the future to 70 or even later (?)
This also allows you to continue to pay into iDeCo for a bit longer.
I asked about backpaying missed years of my Japanese pension but I was not able to. So I will also not get to 40 years. Hoping that the iDeCo will make up the difference to a certain extent.
I expected to pay until 65, then reduce my work if need be, for a couple of years until my uk pension kicks in.
My wife told me about paying an extra 400 yen a month to the JP pension service.
Although I’m not sure how much I’d get back in return for that.
I don’t know how all those people who will only have 10 years JP pension contributions or even zero years.
Everyone says they’ll keep working but eventually thee comes a time whenthey can’t do head shoulders knees and toes or compete with the tall blond blue eyes 21 year old for that English teaching job.
Hopefully we are all on the right path.
Re: Spending in retirement poll
Posted: Thu Jan 13, 2022 12:16 am
by RetireJapan
Bubblegun wrote: ↑Wed Jan 12, 2022 2:55 pm
My wife told me about paying an extra 400 yen a month to the JP pension service.
Although I’m not sure how much I’d get back in return for that.
This is called Fuka Nenkin, and mathematically it is an amazing deal. We wrote about it on the blog a few times:
https://www.retirejapan.com/blog/guest- ... ka-nenkin/
The one caveat is that it uses the same tax allowance as iDeCo, so if you are maxing out your iDeCo account you should
not apply to pay Fuka Nenkin, as this will stop your iDeCo contributions and cause a huge paperwork mess/headache.
I know because I did this for my wife a few years ago after foolishly believing that the nenkin desk in city hall had any idea of what they were talking about
Re: Spending in retirement poll
Posted: Thu Jan 13, 2022 2:19 am
by EmaxisSlim Cultist
Bubblegun wrote: ↑Wed Jan 12, 2022 2:55 pm
[I expected to pay until 65, then reduce my work if need be, for a couple of years until my uk pension kicks in.
My wife told me about paying an extra 400 yen a month to the JP pension service.
Although I’m not sure how much I’d get back in return for that.
I don’t know how all those people who will only have 10 years JP pension contributions or even zero years.
Everyone says they’ll keep working but eventually thee comes a time whenthey can’t do head shoulders knees and toes or compete with the tall blond blue eyes 21 year old for that English teaching job.
Hopefully we are all on the right path.
The truth is the future will be grim for some.
I personally think nenkin+ideco+Tsumitate Nisa puts you head and shoulders above many.
English teaching is not a monolith. And wages vary greatly.
Moving towards FT English speaking jobs in school, or University work might be the logical move if you are aging our of the Eikaiwa game.
It is often said the best advice for retirement, that is often left unsaid, is: "Increase your income.".
Re: Spending in retirement poll
Posted: Fri Jan 14, 2022 8:20 am
by Bubblegun
RetireJapan wrote: ↑Thu Jan 13, 2022 12:16 am
Bubblegun wrote: ↑Wed Jan 12, 2022 2:55 pm
My wife told me about paying an extra 400 yen a month to the JP pension service.
Although I’m not sure how much I’d get back in return for that.
This is called Fuka Nenkin, and mathematically it is an amazing deal. We wrote about it on the blog a few times:
https://www.retirejapan.com/blog/guest- ... ka-nenkin/
The one caveat is that it uses the same tax allowance as iDeCo, so if you are maxing out your iDeCo account you should
not apply to pay Fuka Nenkin, as this will stop your iDeCo contributions and cause a huge paperwork mess/headache.
I know because I did this for my wife a few years ago after foolishly believing that the nenkin desk in city hall had any idea of what they were talking about
Well I think I will be off to the local office to get that then.
I don’t pay much into the IDECO, but this can help.