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Re: Delaying pension
Posted: Fri Feb 09, 2024 2:14 pm
by JimNasium
Do
NOT attempt this if you’ve had a serious knee injury in the past. I’m limping pretty bad right now.
Re: Delaying pension
Posted: Mon Feb 26, 2024 12:57 am
by TimVest21
Tkydon wrote: ↑Wed Jan 31, 2024 4:11 am
TimVest21 wrote: ↑Wed Jan 31, 2024 3:36 am
Any leads on potentially good annuity choices here in Japan?
Now? or at some time in the future?
Good question
I guess a combination of the two…basically something that looks good now for me to bookmark and keep tabs on for potential future need. Sadly, I’m not ready financially for annuities yet.
Re: Delaying pension
Posted: Sat Mar 16, 2024 12:27 pm
by Silversurfer
goodandbadjapan wrote: ↑Thu Oct 26, 2023 2:08 am
There have been a few mentions on these boards about delaying taking a pension and therefore increasing the amount you get. Quick question: if you didn't think you would need to take pension until, say ten years after you are entitled, do you think delaying would be a better option than taking it when you can and just throwing the money into investments? I suppose it all depends on how long you might live, but to have ten years worth invested and (hopefully) accumulating until you are 75 or so seems quite attractive.
I was at the pension office yesterday and I saw a chart that told you how much EXTRA you would get by delaying. If you delay until the age of 66 you get 8.4% more. If you delay until you are 75 the increase is 84%. Figure out how long you expect to live to find out if you will make back the pension money you lost during the years you did not get a pension.
Re: Delaying pension
Posted: Sat Mar 16, 2024 12:40 pm
by Tkydon
Silversurfer wrote: ↑Sat Mar 16, 2024 12:27 pm
goodandbadjapan wrote: ↑Thu Oct 26, 2023 2:08 am
There have been a few mentions on these boards about delaying taking a pension and therefore increasing the amount you get. Quick question: if you didn't think you would need to take pension until, say ten years after you are entitled, do you think delaying would be a better option than taking it when you can and just throwing the money into investments? I suppose it all depends on how long you might live, but to have ten years worth invested and (hopefully) accumulating until you are 75 or so seems quite attractive.
I was at the pension office yesterday and I saw a chart that told you how much EXTRA you would get by delaying. If you delay until the age of 66 you get 8.4% more. If you delay until you are 75 the increase is 84%. Figure out how long you expect to live to find out if you will make back the pension money you lost during the years you did not get a pension.
Before 65
https://www.nenkin.go.jp/service/jukyu/ ... 21-01.html
After 65
https://www.nenkin.go.jp/service/jukyu/ ... 21-02.html
They will stop collecting Pension Contributions on you 60th Birthday, but you will only receive a pension at 65 based on the number of months' contributions to 60, so if you want to increase your number of months' contributions to 65, you should go to the Pension Office and apply to pay Voluntary Contributions to 65 (maximum another 60 months towards the 480 months required for a full pension at 65).
https://www.nenkin.go.jp/international/ ... nsion.html
See the Voluntary Contributions Section.
You can do this any time from the day before your 60th birthday.
Re: Delaying pension
Posted: Thu Mar 21, 2024 1:07 am
by Roger Van Zant
I wonder if anyone on this forum is actually on course to pay the full forty years of contributions?
I started when I was thirty or so, so I am on course to pay in thirty years' worth of contributions (kouseinenken, in my case).
You'd have to start paying in at twenty in order to have a full whack by sixty, and most of us on here weren't even in Japan when we were twenty years-old.
I check my online pension forecast every once in a while, and I am projected to get about 110,000 yen per month in retirement.
So glad I have the UK state pension to back me up, otherwise I'd be screwed.
I now know why I see so many elderly here shuffling around the malls waiting for the bentos to be marked down every evening.
Re: Delaying pension
Posted: Thu Mar 21, 2024 1:13 am
by RetireJapan
Roger Van Zant wrote: ↑Thu Mar 21, 2024 1:07 am
I wonder if anyone on this forum is actually on course to pay the full forty years of contributions?
I started when I was thirty or so, so I am on course to pay in thirty years' worth of contributions (kouseinenken, in my case).
You'd have to start paying in at twenty in order to have a full whack by sixty, and most of us on here weren't even in Japan when we were twenty years-old.
I check my online pension forecast every once in a while, and I am projected to get about 110,000 yen per month in retirement.
So glad I have the UK state pension to back me up, otherwise I'd be screwed.
I now know why I see so many elderly here shuffling around the malls waiting for the bentos to be marked down every evening.
I started paying at 22, so by paying voluntarily after 60 I will hit 40 years (assuming they don't raise it to 45 soon)
Re: Delaying pension
Posted: Thu Mar 21, 2024 5:13 am
by Tkydon
Roger Van Zant wrote: ↑Thu Mar 21, 2024 1:07 am
I wonder if anyone on this forum is actually on course to pay the full forty years of contributions?
I started when I was thirty or so, so I am on course to pay in thirty years' worth of contributions (kouseinenken, in my case).
You'd have to start paying in at twenty in order to have a full whack by sixty, and most of us on here weren't even in Japan when we were twenty years-old.
I check my online pension forecast every once in a while, and I am projected to get about 110,000 yen per month in retirement.
So glad I have the UK state pension to back me up, otherwise I'd be screwed.
I now know why I see so many elderly here shuffling around the malls waiting for the bentos to be marked down every evening.
If they don't continue to take Kosei Nenkin Contributions when you reach 60 (if still in full time employment), you'll be able to pay voluntary contributions for an additional 5 years into the Basic Pension (See links above). You would have to visit the local Pension Office any time after the day before your 60th. birthday to arrange voluntary contributions.
Re: Delaying pension
Posted: Wed Mar 27, 2024 11:03 am
by Chizakura
The funny thing is: your latter contributions have a higher net value because your rest life expectancy grows with your age. I.e. now, if you are 30, you might statistically live until 80 or so. But if you are 79, you statistically live until 90. (numbers are just examples).
So, aside from tax considerations, it makes sense to pay less into the system when being young - and they older you get, the more you should pay. Unless of course you aren't healthy and expect to not match the average life expectancy.
Re: Delaying pension
Posted: Mon Apr 29, 2024 3:47 am
by JimNasium
The Rational Reminder YouTube channel recently made a video on this topic.
https://m.youtube.com/watch?v=C66FqW4Bmyc
It was very interesting, and changed my mind on this topic. Worth a watch if you’re unsure about delaying your pension or not. It’s Canadian based, but it seems to be very similar to how it’s done in Japan (8.4% increase per year, 42% increase if you delay until 70).
Re: Delaying pension
Posted: Mon Apr 29, 2024 3:54 am
by JimNasium
Also, a thought I had. I think many of us here are married to a Japanese wife. With how long women in Japan live, and the lack of survivors pension after 65, it may be a good idea to take your pension at 65 or 70, and have you wife delay taking her pension until 75. It will leave her with an extra 84% on her pension.
