Pension

What you'll learn in this guide What iDeCo is and how it differs from NISA Whether foreigners in Japan can open an iDeCo account iDeCo’s three tax benefits (contributions, growth, withdrawal) How to open an account and which provider to choose What happens to your iDeCo when you leave Japan Quick Answer iDeCo (個人型確定拠出年金) is Japan’s individual defined-contribution pension account. Foreigners enrolled in Japan’s pension system can open iDeCo. The key benefit: contributions are fully tax-deductible, investment growth is tax-free, and withdrawal is taxed at favourable rates. Maximum contribution is ¥23,000/month for company employees. Funds are locked until age 60. ...

Quick Answer Japan’s pension lump-sum refund (脱退一時金): Foreigners who paid pension for 6+ months and leave Japan permanently can claim back up to 3 years of contributions. Apply within 2 years of leaving Japan — from outside Japan to the Japan Pension Service. 20.42% tax is withheld but partially recoverable. On a ¥350,000/month salary with 36 months of contributions, the gross refund is ~¥567,000. Don’t leave Japan without knowing this exists — thousands of foreigners forfeit it every year. ...

Quick Answer All foreign residents in Japan aged 20–59 must pay into the national pension (国民年金). The monthly premium is ¥16,980 (2025). Company employees pay via payroll into the employee pension (厚生年金) — employer covers half. When you leave Japan, you can claim back 20–36 months of contributions as a lump-sum refund (脱退一時金) within 2 years of departure. Apply before leaving. Japan’s national pension system is mandatory for most foreign residents — and many foreigners are either unaware they’re enrolled or unsure whether contributions are worth making. The good news: there’s a refund program when you leave. Here’s everything you need to know. ...

Social insurance in Japan isn’t optional — it’s mandatory, and your employer or local ward office will expect you to be enrolled. Many foreigners arrive without understanding how the system works or what they’re paying into. Here’s a clear explanation of what social insurance covers and what it costs. The Two Systems: Shakai Hoken vs. Kokumin Hoken There are two main social insurance tracks in Japan: 1. Employees’ Social Insurance (Shakai Hoken) If you work full-time for a company, you are automatically enrolled in the employees’ social insurance system, which includes: ...

Working in Japan while your company also operates in your home country? You might be paying pension contributions in two countries at once — money that’s largely wasted. Japan’s social security agreements (社会保障協定) fix this. Here’s what they cover and how to use them. What Is a Social Security Agreement? A social security agreement (also called a totalization agreement) is a bilateral treaty between Japan and another country that coordinates pension and social insurance systems. The goals: ...