RetireJapan

All of you are awesome, thank you so much for the information! Applying for an account through Rakuten! Hoping my workplace can do the withholding option!

Tkydon wrote: ↑Thu Dec 28, 2023 3:53 pm 1.Pay the maximum into Shigaku Kyousai - This is deducted Pre-Tax, so no tax withholding, but no refund...

Could you explain this point? All member are automatically paying into 厚生年金, what are the conditions for paying more? And what is maximum?

Tkydon wrote: ↑Thu Dec 28, 2023 3:53 pm 1.Pay the maximum into Shigaku Kyousai - This is deducted Pre-Tax, so no tax withholding, but no refund...

The individual has no control over how much they pay (it's basically kosei nenkin with a lemon twist) so this is not a factor.

Then I plain don't understand the limit of 12,000 yen. Can someone explain why they are capped?

zak wrote: ↑Fri Dec 29, 2023 9:13 am Then I plain don't understand the limit of 12,000 yen. Can someone explain why they are capped?

It's probably because it's a good system already, so there's less perceived need to give more tax breaks to those members. And ideco/nisa are still available.

captainspoke wrote: ↑Fri Dec 29, 2023 9:46 am

zak wrote: ↑Fri Dec 29, 2023 9:13 am Then I plain don't understand the limit of 12,000 yen. Can someone explain why they are capped?

It's probably because it's a good system already, so there's less perceived need to give more tax breaks to those members. And ideco/nisa are still available.

But other standard kosei nenkin payers get to contribute 23,000yen per month.
RJ mentioned that this shigaku kyosai limit will be increased to 20,000 next year - is this to close this gap?

beanhead wrote: ↑Fri Dec 29, 2023 11:05 am

captainspoke wrote: ↑Fri Dec 29, 2023 9:46 am

zak wrote: ↑Fri Dec 29, 2023 9:13 am Then I plain don't understand the limit of 12,000 yen. Can someone explain why they are capped?

It's probably because it's a good system already, so there's less perceived need to give more tax breaks to those members. And ideco/nisa are still available.

But other standard kosei nenkin payers get to contribute 23,000yen per month.
RJ mentioned that this shigaku kyosai limit will be increased to 20,000 next year - is this to close this gap?

That was speculation.

(eg, I should keep my mouth shut.)

zak wrote: ↑Fri Dec 29, 2023 9:13 am Then I plain don't understand the limit of 12,000 yen. Can someone explain why they are capped?

iDeCo is designed to supplement pensions, and the limits reflect perceived need.

Public servants/kyosai members have the best pensions, so they get the lowest iDeCo contributions.

Kosei nenkin is pretty similar, so a bit more, and kokumin nenkin payers will get almost nothing, so they get the highest contribution limit of 68,000 a month.

Kyosai nenkin is not as good as it was before the change merging it with kosei nenkin, which might explain the upcoming rise from 12,000 to 20,000 in September.

RetireJapan wrote: ↑Fri Dec 29, 2023 11:38 am
Kyosai nenkin is not as good as it was before the change merging it with kosei nenkin, which might explain the upcoming rise from 12,000 to 20,000 in September.

Just to note that the new limit appears to take effect on December 1, 2024, according to the Ministry of Health, Labour and Welfare and various other sites.

ClearAsMud wrote: ↑Sat Dec 30, 2023 3:33 am

RetireJapan wrote: ↑Fri Dec 29, 2023 11:38 am
Kyosai nenkin is not as good as it was before the change merging it with kosei nenkin, which might explain the upcoming rise from 12,000 to 20,000 in September.

Just to note that the new limit appears to take effect on December 1, 2024, according to the Ministry of Health, Labour and Welfare and various other sites.

Thanks for the correction! Did they change it? Could have sworn I had seen multiple sources saying September

Will be more accurate going forward...