RetireJapan

Christmas is a season for sharing and caring, is it not?

So let me share the information I read while having dinner tonight, and hope it is officially confirmed around the 15th-20th of this month:

Apparently the permitted contribution amounts for ideco will go up to 62000 a month for those without a company pension, the same total figure for those with one, and 75000 for business owners.

Whopping increases, as Father Christmas would agree (I’m not religious, but you can’t blame me for having a festive mood).

So let me relish in the joy, and wish you all a great Christmas and NY!

It's in the news as being considered/close to being agreed on:

https://www3.nhk.or.jp/news/html/202412 ... 81000.html

As I mentioned above, a final official announcement is likely to come around the 15th to 20th of this month. But given how specific these news reports have been with the expected figures, I would imagine that the final figures too will not be too different.

IloveJapan wrote: ↑Tue Dec 10, 2024 3:12 pm Christmas is a season for sharing and caring, is it not?

So let me share the information I read while having dinner tonight, and hope it is officially confirmed around the 15th-20th of this month:

Apparently the permitted contribution amounts for ideco will go up to 62000 a month for those without a company pension, the same total figure for those with one, and 75000 for business owners.

Whopping increases, as Father Christmas would agree (I’m not religious, but you can’t blame me for having a festive mood).

So let me relish in the joy, and wish you all a great Christmas and NY!

that is indeed pretty awesome news, it look like the limit will go up 7000 yen for people with corporate pensions also? So from 20,000 to 27000? Or am I reading that wrong?

I have to admit, I don’t have a company pension so I don’t know the nuts and bolts of how that would work, but my understanding is that the combined contributions from your company and from you will be able to total up to ¥62000 a month.

The other thing is that companies themselves have internal rules, so best check with your employer.

I believe the general idea behind the changes, apart from making it easier for people to make pension provisions, is to make the system more neutral regardless of your employment status or lifestyle.

For people like me, who are non-permanent workers, it looks like a real game changer, because a leap in permitted contributions from ¥23,000 to ¥62,000 would turn the ideco into a truly viable pension.

I am truly happy for all the non-seishain in Japan, considering all the discrimination they face, though what action they take will depend on their values.

Needless to say, your ideco’s value will also most likely rise with inflation, unlike the UK state pension!

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.

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!

Wales4rugbyWC23 wrote: ↑Wed Dec 11, 2024 1:28 am What about small business owners.... Who do not have access to Kosen nenkin

You could incorporate

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!

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?

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.