RetireJapan

RetireJapan wrote: ↑Wed Dec 11, 2024 2:23 am

Tsumitate Wrestler wrote: ↑Wed Dec 11, 2024 2:03 am It is strange to me that they did this, as floor 1 nenkin payers are the most at risk, and the most in need.

Previous proposals seemed to suggest much larger allowances for this category. I wonder what happened? Is it to do with the retirement bonus tax system?

Big change in direction, that is for sure.

But to be fair, if someone was able to max out NISA and this iDeCo allowance, they would be fairly well off by retirement.

Full-time employees were already "fine", with two floors of the pension + IDeco/Nisa....They got a big bump.

The former, lack that "annuity" safety that comes with the pension.

No advocates for part-timers I suppose.

That is why the government is trying to expand shakai hoken to people currently uncovered, and trying to tighten up on organizations that skirt their obligations.

And of course people who are excluded from shakai hoken aren’t eligible to participate in ideco either.

I don’t know whether compliance has improved the past few years - I certainly hope it has, as a long time ago I experienced interviews with stupid employers who blatantly said they don’t give shakai hoken.

RetireJapan wrote: ↑Wed Dec 11, 2024 1:34 am

Wales4rugbyWC23 wrote: ↑Wed Dec 11, 2024 1:28 am What about small business owners.... Who do not have access to Kosen nenkin, we can only put 68,000 for Ideco, 70,000 yen for 小規模企業 and the state pension. Hardly a comfortable retirement. I would appreciate some more generosity with our Ideco allowances.

Yeah, kokumin nenkin payers go up to 75,000 yen a month under this proposal, but it seems slighly unfair if kosei nenkin payers are getting 62,000 yen a month now.

Still, better than nothing!

So for sole proprietors and small business owners, your own allowance goes up from 68,000 to 75,000 yen?

That’s my current understanding based on the past day’s news. But final decision is due in a few day’s time.

Wales4rugbyWC23 wrote: ↑Wed Dec 11, 2024 12:42 pm So for sole proprietors and small business owners, your own allowance goes up from 68,000 to 75,000 yen?

It is confusing to think about iDeCo in terms of job type. I find it much more accurate to talk about what nenkin someone is paying, as that is actually what the allowances are based on. Some small business owners are incorporated and thus paying kosei nenkin, for example.

Here I’m coming back with a question of my own.

Are these changes (raise in permitted monthly contributions to 62,000 yen and 75,000) likely to take effect from January 2026?

I’d like to raise my contributions as early as possible.

I know that details of the new NISA were announced a year ahead of their introduction…

IloveJapan wrote: ↑Sun Dec 15, 2024 2:18 am Are these changes (raise in permitted monthly contributions to 62,000 yen and 75,000) likely to take effect from January 2026?

That is the million dollar (yen?) question. The articles I have seen just say the changes will be from next year, but it seems awfully tight to implement them from January. Maybe from April?

just seen this from bens blog(thanks ben) didnt even realise this was going to happen..

currently paying 23000 so presume can go up to 62000yen?
not sure if it makes a difference but am with monex-how do i go about making the change in investments??

(or is it not decided yet)

also for teachers(my wife) will the current miserly limit be increased?
thanks!

Just watched this video (I like this guy): https://youtu.be/Gc5nSBGbyvI?si=pa6bVRPtcaZWywOP

Seems that these are still just proposals and need to go through the Diet next before a timeline for implementation is decided.

Also he too failed to talk about kyosai members (public servants, teachers, etc).

RetireJapan wrote: ↑Mon Dec 16, 2024 3:21 am Just watched this video (I like this guy): https://youtu.be/Gc5nSBGbyvI?si=pa6bVRPtcaZWywOP

Agree with you. His explanations are clear and simple. I hope he he has successfully 'monetized' (hate that word) his YouTube gig.
There was another one with a tiger or something as the presenter. That was pretty poor, IMO.