RetireJapan

Dear All,

Are the two years back payments you have to make if you re-join the Japanese state pension tax deductible on your tax return?

I can't see any reason why they wouldn't be.

My employer pays my pension from my salary these days, but back in the day when I paid my own contributions I think they sent me a postcard every year confirming how much I'd paid, and this amount then got transferred to my tax return, with the postcard glued on to the supporting form as evidence.

Similar question. Is it possible to make voluntary contributions to the Japanese state pension to cover 'missed' years if you aren't going to reach 40 years?
And, then, is this worth it...?

beanhead wrote: ↑Tue Mar 16, 2021 3:30 am Similar question. Is it possible to make voluntary contributions to the Japanese state pension to cover 'missed' years if you aren't going to reach 40 years?

You can only cover up to the previous two years payments.

There is a distinction between months where you are not eligible, e.g. not living in Japan, and years where you were supposed to pay but didn't. The latter just remain as "unpaid" month, but I'm not sure how they're treated for the payment calculation. I believe they're treated the same as if you were ineligible to pay - i.e. they don't count towards the pension.

beanhead wrote: ↑Tue Mar 16, 2021 3:30 am Similar question. Is it possible to make voluntary contributions to the Japanese state pension to cover 'missed' years if you aren't going to reach 40 years?
And, then, is this worth it...?

If my memory serves me right a few years ago, they were offering a kind of amnesty to non-payers and were offering up to 10 years of back payments for up to two million yen, which you could pay all in one go. I think that offer has closed though.

What is the maximum age to which you can make payments to the Japanese pension?
I am 42, been paying in for, I think, 14 years.
I would need to pay in until 68 to make a complete 40 years of contributions.
If you can only pay in until aged 62, as I believe I heard, then I guess I'll just have to live with 34/40 of a full pension....ho hum.

Roger Van Zant wrote: ↑Tue Mar 16, 2021 12:44 pm What is the maximum age to which you can make payments to the Japanese pension?
I am 42, been paying in for, I think, 14 years.
I would need to pay in until 68 to make a complete 40 years of contributions.
If you can only pay in until aged 62, as I believe I heard, then I guess I'll just have to live with 34/40 of a full pension....ho hum.

It you aren’t working and contributing you can make voluntary contributions age 60-64 for the base pension.

https://www.city.gifu.lg.jp/10086.htm


According to that link, had you been born before April 1965 you could make contributions until age 70. (Which assumes you’d defer when you start drawing a pension.)

Although that boomer DOB threshold isn’t mentioned here.

https://www.nenkin.go.jp/service/kokune ... 27-03.html

I think it’s good value. You’ll need to get the pension for 10 years to see an actual ROI. But as you are making these contributions at the end of your contributing period they would not have had time to compound if they were invested instead.

Right now I pay into the shakai hoken system, so I pay pension contributions as well as my employer. For my company, I think they make us "retire" at 62. I say "retire", because most employees here just continue working but as a contract employee instead on slave wages. If I have to stop being a "seishain" at 62 and switch to being a contract employee, does that mean I cannot stay in shakai hoken past 62? Would I have to join the shitty kokumin nenkin plan from 62-70 and pay all the pension contributions myself?

Moneymatters wrote: ↑Tue Mar 16, 2021 8:05 pm
It you aren’t working and contributing you can make voluntary contributions age 60-64 for the base pension.

Ah, yes, just for the basic pension. If it were possible to pay for the 厚生年金 part as well it may be more interesting.
Anyway, something to think about.

When I started contributing to the Japanese pension (after being told I didn't need to/couldn't/shouldn't by a dodgy employer), I didn't make any back payments. That was more than 10 years ago, so I guess I cannot pay them now. May be worth asking the tax office though.