Ordinarily investing vs iDeco investing

[RetireJapan]

Love the website. Looks great. You could include the tax benefits of iDeCo in the description, trying to work out how much it is worth would be complex, as it depends on the person's marginal tax rate, etc.

[adamtokyo]

Thanks!

Perhaps I could create a separate Ideco section which illustrates a salaryman/woman on an average income tax rate of 25% and make it clear the income tax rate varies for each individual.

Then I could maybe show how much extra the salaryman's monthly contributions would grow in an Ideco. E.g. at 25% income tax, their ¥20,000 monthly contributions become ¥25,000 thanks to the income tax relief.

But is that calculation that simple / correct?

If it is then I could show how much 25,000 could grow to for the same time range to illustrate just how much of a difference this makes when compounded.


Then explain how any growth is partially protected by tax instead of giving an exact figure.

[RetireJapan]

You could just link to the government simulation here: http://dc-center.jp/checker/

[adamtokyo]

Yeah I'll probably just do that. I might however explain the principle using unrealistic yet illustrative figures as I think people will be surprised by the tax relief going in. Back to the drawing board

Thanks for all your help