Nenkin Lost Years

[RetireJapan]

Just back from the nenkin office and was not allowed to back pay for even two years as they deadline for that has expired in my case. I will have an option of paying beyond my 60th bday up to 5 more years to 65 should I wish, but for now it seems I'm not going to be able to top-up unless some future changes happen.

Thanks for the update and sorry to hear. Hopefully they will have some kind of amnesty in the future.

[banders]

...I will have an option of paying beyond my 60th bday up to 5 more years to 65 should I wish...

I work that out as for each year of voluntary contributions (¥16,590 pm x 12 = ¥199,080 pa) you'll receive
12/480 x ¥777,800 = ¥19,445 pa (¥1,620 pm) extra in benefits.

Hard to know if that's a good 'investment'.

[RetireJapan]

Hard to know if that's a good 'investment'.

I would suggest it's not an investment, and is a good way to diversify

https://www.retirejapan.com/pensions-ar ... vestments/

[beanhead]

I work that out as for each year of voluntary contributions (¥16,590 pm x 12 = ¥199,080 pa) you'll receive
12/480 x ¥777,800 = ¥19,445 pa (¥1,620 pm) extra in benefits.

Hard to know if that's a good 'investment'.

It is insurance. Many folks will live for 10 years after retirement age, so even with your breakeven above, it will make sense for a lot of people.

[thejunman]

How many years do we need to pay in order to get the full pension? I keep reading different figures.

I only started paying into the pension since I was 33 and I'm on National Insurance as opposed to Company Insurance if that makes any difference.

[adamu]

How many years do we need to pay in order to get the full pension?

40.

Basic Pension: Kokumin Nenkin

[Tkydon]

...I will have an option of paying beyond my 60th bday up to 5 more years to 65 should I wish...

I work that out as for each year of voluntary contributions (¥16,590 pm x 12 = ¥199,080 pa) you'll receive
12/480 x ¥777,800 = ¥19,445 pa (¥1,620 pm) extra in benefits.

Hard to know if that's a good 'investment'.

That increase "¥19,445 pa (¥1,620 pm) extra in benefits." is on the Basic Pension.
If you are in employment and contributing to the Kosei Nenkin - Employee Pension Insurance, that will also provide an additional amount in retirement.

Rather than trying to catch up, you can put that money into an iDECO, if you don't already have one, or into NISA;
the remaining half of this year, either Max Y1.2M in Regular NISA or Max Y700,000 in Tsumitate NISA, or
from next year, both max Y2.4M in Regular NISA and max Y1.2M in Tsumitate NISA, and
you'll be able to withdraw the funds from NISA completely tax free, whereas the National Pension, iDECO, etc., will actually be taxed in retirement.

[beanhead]

It's not an investment. It's an Insurance Policy, and it's not optional...

Topic was additional payments from 60 to increase your paid-in years. This is optional (and advisable, I think, for many of us who can't get to 40 years).

[TokyoBoglehead]

It's not an investment. It's an Insurance Policy, and it's not optional...

Topic was additional payments from 60 to increase your paid-in years. This is optional (and advisable, I think, for many of us who can't get to 40 years).

And those who want to top-up ideco!

As many people become part-time at 60 and have access to 68,000 a month in iDeco contributions if they opt-in, it's definitely can be worth it.

[VG1]

Hard to know if that's a good 'investment'.

I would suggest it's not an investment, and is a good way to diversify

https://www.retirejapan.com/pensions-ar ... vestments/

Not sure if it's a problem on my side or not, but I see a "this page can't be found" error message when I click on the link.