Save your money, man

[RetireJapan]

Just got my nenkin teikibin email.

Checked my account online and my nenkin projection (based on contributions to date) is 1,151,502円 per year.

Don't depend on state pensions. It is so important to also save and invest for your own future.

[beanhead]

Is this because you stopped working?
You are presumably paying kokumin nenkin now. Is your projected number lower now due to the lack of contributions from your previous employer?

[TokyoBoglehead]

Is this because you stopped working?
You are presumably paying kokumin nenkin now. Is your projected number lower now due to the lack of contributions from your previous employer?

Basic nenkin is not something one can survive on.

Benefit Amount (Fiscal year 2023)
\795,000* (full annual benefit amount based on 40 years (aged between 20 and 59 years) of fully contributed coverage periods)

If you add the 68000 iDeco contribution, things start to look more hopeful.

However many cat 3 persons don't (or cannot) contribute and are in unstable employment situations. They'll literally need to work until they die. It's bleak.

Japan needs to raise the floor and make employers contribute towards nenkin at all employment levels.

[RetireJapan]

Is this because you stopped working?
You are presumably paying kokumin nenkin now. Is your projected number lower now due to the lack of contributions from your previous employer?

Nenkin has two types of projections.

Before age 55 you get a projection based on contributions so far (that's what this is).

After age 55 you get a projection based on continuing to contribute at the same rate until 65.

[Moneymatters]

Just got my nenkin teikibin email.

Checked my account online and my nenkin projection (based on contributions to date) is 1,151,502円 per year.

Don't depend on state pensions. It is so important to also save and invest for your own future.

Did you mean to say “don’t solely depend on state pensions”?

Also.

Nenkin has two types of projections.

Before age 55 you get a projection based on contributions so far (that's what this is).

After age 55 you get a projection based on continuing to contribute at the same rate until 65.

I though you get the projection from age 50. And it’s it based on continued contributions until age 60. Before I’m usually wrong twice before breakfast..

[RetireJapan]

Just got my nenkin teikibin email.

Checked my account online and my nenkin projection (based on contributions to date) is 1,151,502円 per year.

Don't depend on state pensions. It is so important to also save and invest for your own future.

Did you mean to say “don’t solely depend on state pensions”?

My preference would be to be okay without the pension, then you can survive future rule changes etc. Anything you get from the pension is a nice extra bit of income, but your basics are covered anyway.

[RetireJapan]

Nenkin has two types of projections.

Before age 55 you get a projection based on contributions so far (that's what this is).

After age 55 you get a projection based on continuing to contribute at the same rate until 65.

I though you get the projection from age 50. And it’s it based on continued contributions until age 60. Before I’m usually wrong twice before breakfast..

You are probably right. I will check!

[beanhead]

I though you get the projection from age 50. And it’s it based on continued contributions until age 60. Before I’m usually wrong twice before breakfast..

The 60 part is correct, I think.
My understanding is that the whole thing is still based on contributing until 60.
It is possible to keep paying after this (until 65 at the moment?), but mandatory payments stop at 60, so the projections are done on this basis.

Nenkin Net also allows you to do various other non-standard calculations such as receiving payments later.

[Tkydon]

I though you get the projection from age 50. And it’s it based on continued contributions until age 60. Before I’m usually wrong twice before breakfast..

The 60 part is correct, I think.
My understanding is that the whole thing is still based on contributing until 60.
It is possible to keep paying after this (until 65 at the moment?), but mandatory payments stop at 60, so the projections are done on this basis.

Nenkin Net also allows you to do various other non-standard calculations such as receiving payments later.

See the discount factors for receiving the Pension from 60 to 64

https://www.nenkin.go.jp/service/jukyu/ ... 21-01.html

or the multiplication factor for receiving the Pension from 66 to 75

https://www.nenkin.go.jp/service/jukyu/ ... 21-02.html