imaginatorium wrote: ↑Sat Aug 20, 2022 6:56 am
As for inflation, I despair. Innumeracy is all the rage. Stupid has won. (Look, inflation in Japan has absolutely nothing to do with it. Inflation in the UK is precisely what changes the real value of a fixed-sterling-amount pension. So current talk of 10% inflation means I lose 9% of my pension.)
If inflation is low in Japan then your UK pension gives you more spending power if you live here.
Of course, the exchange rate will affect that as well.
Another thing that we can't control so shouldn't fret over...
Aiming to retire at 60 and live for a while longer. 95% index funds (eMaxis Slim etc), 5% Japanese dividend stocks.
imaginatorium wrote: ↑Sat Aug 20, 2022 6:56 am
Just to mention that there are some of us (I may not be the only one) who made honest NI contributions while working in the UK. When I came here 30something years ago I had no idea I could make supercheap contributions, and I'm not sure I would have thought it a very good idea, since it involves contributing to something you have absolutely no representation in, which can be changed capriciously.
I would think that ending the cheap (i.e. basically unfair) contributions was an excellent idea, and could well be combined with restoring the pension of the honest contributors.
As for inflation, I despair. Innumeracy is all the rage. Stupid has won. (Look, inflation in Japan has absolutely nothing to do with it. Inflation in the UK is precisely what changes the real value of a fixed-sterling-amount pension. So current talk of 10% inflation means I lose 9% of my pension.)
I think ‘honest’ is an extremely poor choice of word here. Granted the Class 2 contributions are an anomaly which results in extremely cheap entitlement, but folk are simply following the rules. Further, those living in the U.K. have the right to pay class 3 voluntary contributions at the exact same rate. And, by definition, anyone paying class 2s will have worked in the U.K. at some point in the past.
I don’t follow your inflation argument. For those of us living in Japan, high U.K. inflation will likely boost our state pension payout as U.K. pension payouts will more than likely go up by more than inflation in Japan.
I don't follow OP's inflation argument either. He is missing the point entirely. No way will inflation in Japan outstrip inflation in the UK, so there is really not much to worry about with regard to not being able to "uprate". Funny to call us "stupid" and "innumerate" though, eh?!
Investments:
Company DB scheme ✓
iDeCo (Monex) eMaxis Slim All Country ✓
新NISA (SBI) eMaxis Slim All Country ✓
Japanese pension (kosei nenkin) ✓
UK pension (Class 2 payer) ✓
