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How does the iDeco annuity works?
Posted: Thu Dec 16, 2021 7:08 am
by Jansen
I tried looking around a few iDeco sites but they don't mention anymore details other than that you'll get a 年金.
How much do you get?
For how long, till the money runs out or you die?
What happens to the remainder when you die?
etc.
Re: How does the iDeco annuity works?
Posted: Thu Dec 16, 2021 7:37 am
by EmaxisSlim Cultist
With iDeco, what you get is what you put in + / - the market movement.
The pension feature is just selling a set amount monthly/yearly to create income. I believe you can set the amount.
A percentage can be sold each year tax-free, however this tax-free allowance is shared between other income sources so many do not want to lumpsum withdrawal.
How fast or slowly you burn through depends on you. If you die,? Good question, not sure.
You can do this Monthly planned sale with regular investment trusts at Rakuten and SBI.
Re: How does the iDeco annuity works?
Posted: Fri Dec 17, 2021 4:15 am
by fools_gold
Most people opt for the lump sum. There's a big tax break for lump sum retirement payments.
On the other hand, the pension will probably be taxed. When you're 65 there is only a 1.1 million yen allowance for pensions. If you have been paying into kosei nenkin as well as kokumin nenkin for a while then you'll probably be over this limit.