Japan (JP)
Japan is one of the world's most captivating destinations for expats — a country where ancient temple culture and ultra-modern technology coexist seamlessly.
Retirement & Pension in Japan
State pension, contribution refunds, private pension vehicles, and international agreements.
Japan's state pension system has two tiers: the National Pension (国民年金 / Kokumin Nenkin) provides a flat-rate basic pension to all residents aged 20–59; the Employee Pension Insurance (厚生年金保険 / Kosei Nenkin Hoken) provides an earnings-related supplement for employees enrolled through Shakai Hoken. Both tiers are administered by the Japan Pension Service (日本年金機構 / Nihon Nenkin Kikō). Japan faces the world's most severe pension sustainability challenge — one of the most rapidly ageing societies globally. Foreign nationals must contribute to the pension system like Japanese residents and may choose between claiming future pension benefits or applying for a lump-sum withdrawal (脱退一時金 / Dattai Ichiji-kin) when they permanently leave Japan. As of 2026, Japan has totalization agreements with 24 countries, allowing contribution periods to be combined to meet minimum qualifying thresholds. Major iDeCo reforms take effect December 2026, significantly raising employee contribution limits.
State Pension
National Pension (Kokumin Nenkin / 基礎年金): All residents aged 20–59 contribute a flat monthly premium of ¥17,920 in FY2026 (April 2026 – March 2027), up from ¥16,980 in FY2025. The premium increases annually according to a statutory adjustment formula. Full pension (40 years / 480 months of contributions): approximately ¥847,300/year (approximately ¥70,608/month) in FY2026. Employee Pension Insurance (Kosei Nenkin): Automatically enrolled for employees covered by Shakai Hoken. Earnings-related supplement calculated from Standard Monthly Remuneration (標準報酬月額 / SMR) × contribution months × accrual factor. Employee contributes 9.15% of SMR; employer matches at 9.15% — total 18.3% (rate fixed since September 2017). SMR is capped at ¥650,000/month (Grade 32). Total pension = basic Kokumin Nenkin amount + Kosei Nenkin earnings-related supplement. Track your estimated pension at Nenkin Net (nenkin.go.jp) — requires MyNumber registration.
Standard pensionable age: 65 for both men and women. Early receipt option: ages 60–64 — pension permanently reduced by 0.4% per month before 65 (maximum 24% reduction for claiming from age 60). Deferred receipt option: ages 65–75 — pension permanently increased by 0.7% per month deferred beyond 65 (maximum 84% increase for deferring to age 75, the maximum age introduced in 2022). A separate reform effective April 2026 raises the monthly earnings suspension threshold (在職老齢年金 / combined work-and-pension limit) from ¥510,000 to ¥620,000, allowing more working retirees to receive their full pension without reduction.
10 years (120 months) of contributions — including actual contributions, contribution exemption periods (免除期間, which count at reduced weight), and — where a totalization agreement applies — combined periods in the partner country — are required to receive any pension payment. If you have fewer than 120 months combined, you cannot receive a future pension and the lump-sum withdrawal is the only option.
Use Nenkin Net (ねんきんネット — nenkin.go.jp) to view your contribution history, estimated future pension amounts, and download contribution records. Registration requires MyNumber and a Japan Pension Service ID from your annual pension notice (ねんきん定期便) sent each August. The annual notice is sent by post to all contributors — keep this document carefully. English guidance on Nenkin Net is limited — use translation assistance or consult a Sharoushi (社会保険労務士 / social insurance labour consultant).
Foreign nationals who leave Japan after qualifying (120+ months) can receive their Japanese pension from abroad. Contact the Japan Pension Service from your home country to begin the claim process. Payments: made in Japanese yen to a Japanese bank account (which you must maintain) or, for some countries, directly overseas via international transfer. Tax: Japan withholds 20.42% tax (income tax + reconstruction special surtax) on pension payments to non-residents. Tax treaties may reduce this rate — consult the Japan Pension Service international affairs desk (0570-05-4890, international calls accepted) and your home country's tax authority for your specific situation.
Pension Contribution Refund on Leaving Japan
Foreign nationals (非日本人) who: (1) have contributed to the Japanese pension (Kokumin Nenkin or Kosei Nenkin) for at least 6 months; (2) do not have Japanese citizenship; (3) have left Japan permanently (or are about to leave); and (4) apply within 2 years of departure date. Applying for the lump sum is mutually exclusive with claiming a future Japanese pension — the lump sum forfeits any future pension rights from Japanese contributions.
Japanese citizens cannot apply. Foreign nationals who have accumulated 120+ months and are eligible for a future pension are strongly advised to evaluate the future pension against the lump sum — the lifetime pension often far exceeds the one-time lump sum. Those still residing in Japan are not eligible. Those who have already applied and received a previous lump-sum withdrawal for the same contribution period cannot apply again.
You must have left Japan before applying. The application can be submitted up to 2 years after your departure date. The 2-year deadline is strict — late applications are rejected without exception.
Months eligible for refund: minimum 6, maximum 60 months (5 years). Even if you contributed for more than 60 months, the maximum refundable is capped at 60 months of contributions regardless of actual contribution history. The amount is calculated from your Average Standard Monthly Remuneration (平均標準報酬額) for Kosei Nenkin, or the flat Kokumin Nenkin premium rate for each applicable period, multiplied by the applicable refund ratio for your months of contribution. Tax: 20.42% withholding tax (所得税 + 復興特別所得税) is deducted at source. Depending on your home country's tax treaty with Japan, you may be able to reclaim some or all of this withholding through a tax refund application (還付申請) filed within 5 years.
After departing Japan: (1) Appoint a Tax Representative in Japan (税務代理人) — required for Japanese tax refund claims. (2) Submit the Lump-Sum Withdrawal Application (脱退一時金請求書) to the Japan Pension Service (日本年金機構). The form is available at nenkin.go.jp. Send with: copy of pension account number (年金番号) or MyNumber, copy of passport showing departure stamp, copy of overseas bank account details for payment, Zairyu card return evidence. (3) Processing time: approximately 2–4 months. (4) To reclaim the 20.42% withholding tax: submit a tax refund application (所得税還付申請書) via your Tax Representative to the relevant tax office before the 5-year statute of limitations expires.
The 60-month cap was raised from 36 months in 2021. Contributions in excess of 60 months do not increase the lump sum — they are simply lost if you choose the lump sum. A foreign national who has contributed for 90 months and is covered by a totalization agreement with their home country can often claim a proportional pension from Japan covering the full 90 months through combined periods — this may be worth substantially more than the capped lump sum. Strongly seek professional advice from a Sharoushi or Japan pension specialist before choosing between the lump sum and future pension rights.
International Totalization Agreements
Japan has totalization agreements (社会保障協定 / Shakai Hoshō Kyōtei) with 24 countries as of 2026: Germany, United Kingdom, United States, South Korea, France, Belgium, Canada, Australia, Netherlands, Czech Republic, Spain, Ireland, Brazil, Switzerland, Hungary, India, Luxembourg, Philippines, Slovakia, China, Finland, Sweden, Italy, and Austria (Austria's agreement entered into force December 1, 2025). Note: the agreements with the UK, South Korea, China, and Italy cover dual coverage elimination only — they do NOT include period totalisation. Agreements with the remaining 20 countries provide both dual coverage elimination and period totalisation. These agreements: (1) eliminate double contributions — while working in Japan under a sending-country assignment, you contribute only to one system; (2) allow combining contribution periods in both countries to meet the minimum qualifying threshold (120 months in Japan, varying minimums in partner countries). Example: a French national works in Japan for 7 years (84 months) and in France for 4 years — combined = 120+ months, qualifying for proportional pensions from both countries. Without the agreement, the Japanese 84 months would only be refundable via the capped 60-month lump sum.
Private Pension Vehicles
Individual-type Defined Contribution Pension
iDeCo (個人型確定拠出年金)Almost all Japan residents aged 20–65 (from December 2026: up to age 70) with income: employees (both Shakai Hoken and NHI), self-employed, and part-time workers. Available to foreign nationals resident in Japan.
No direct subsidy. Tax deduction: all iDeCo contributions are fully tax-deductible from income — reducing both income tax and residence tax liability. Investment growth is tax-exempt within the iDeCo wrapper. At withdrawal, a substantial tax-free lump-sum allowance (退職所得控除 — ¥700,000 × years enrolled, up to ¥20 million) applies.
Contributions: fully deductible from taxable income. Example at current limits: employee contributing ¥23,000/month saves approximately ¥55,000–¥100,000/year in income tax + residence tax depending on income bracket. Growth: tax-free compounding within the account. Withdrawal: taxed as retirement income (退職所得) with significant deduction allowance.
Current limits (until November 2026): ¥23,000/month (employees without company DC plan); ¥20,000/month (employees with company DC plan); ¥68,000/month (self-employed / Kokumin Nenkin Category 1). From December 2026 (major reform): ¥62,000/month for all employees regardless of whether they have a company pension plan; ¥75,000/month for self-employed (Category 1). Age eligibility extended from under 65 to under 70 from December 2026.
Not portable internationally — iDeCo assets cannot be transferred to foreign pension schemes. Assets must remain in Japan until age 60 (earliest). If you leave Japan before 60, the account remains locked until you reach that age — plan accordingly.
Foreign nationals can open iDeCo accounts at major financial institutions (Rakuten Securities, SBI Securities, Matsui Securities are popular for self-directed investors). The December 2026 increase in employee limits from ¥23,000 to ¥62,000/month is a very significant change — annual capacity grows from ¥276,000 to ¥744,000. Set up iDeCo as early as possible to maximise the cumulative tax deduction benefit. Upon permanently leaving Japan before age 60, contributions cannot be refunded — the account stays locked.
Company-type Defined Contribution Pension
企業型DC / 確定拠出年金 (Kigyō-gata DC)Employees of companies that have established a DC pension plan. Common at international companies and large Japanese corporations. Employer contributions are the core; employee additional contributions (マッチング拠出 / matching contributions) are optional.
No direct subsidy. Tax treatment same as iDeCo — employer contributions are deductible for the company; investment growth tax-free; withdrawal taxed as retirement income with large allowance.
Same as iDeCo. Employee additional contributions under matching: deductible from income. From April 2026: the restriction limiting employee matching contributions to no more than employer contributions is abolished — employees can now contribute more than their employer does.
¥55,000/month combined (employer + employee, if no DB plan) or ¥27,500/month (if also covered by a Defined Benefit plan). Employer sets the specific amount within legal maximums.
Portable within Japan (transfer to new employer's DC plan or convert to iDeCo upon leaving the employer). Cannot transfer overseas.
Check your employment contract and HR benefits documentation for whether your company offers a DC pension. If yes, enroll immediately — employer contributions are effectively free retirement savings. The April 2026 removal of the matching contribution restriction means employees can now voluntarily top up their DC contributions above the employer contribution amount, subject to the ¥55,000/month combined ceiling.
National Pension Fund (Additional)
国民年金基金 (Kokumin Nenkin Kikin)Self-employed individuals (Kokumin Nenkin Category 1 payers) who want to supplement their basic flat-rate pension. Not available to employees enrolled in Kosei Nenkin.
No subsidy. All contributions are fully tax-deductible from income.
Contributions: fully deductible (same treatment as iDeCo). Growth: tax-deferred. Withdrawal: treated as public pension — taxed under the public pension income deduction.
¥68,000/month combined with iDeCo contributions (until November 2026); ¥75,000/month combined from December 2026.
Japan-only, not portable internationally.
Less flexible than iDeCo — once you choose a plan type and payment amount, it is difficult to change. iDeCo is generally preferred for self-employed individuals due to greater investment choice and flexibility. Cannot contribute to both iDeCo and Kokumin Nenkin Fund simultaneously above the combined ¥68,000/month ceiling (¥75,000 from December 2026).
NISA (Tax-Free Investment Account)
新NISA / ニーサ (Shin-NISA, from January 2024)All Japan residents aged 18+ including foreign nationals. Not a pension per se, but an important long-term savings vehicle integral to retirement planning.
No subsidy. Tax exemption on all investment returns (dividends and capital gains) within the account permanently.
All investment gains and dividends within the NISA wrapper are permanently tax-exempt. Under the 2024 Shin-NISA reform: annual contribution limit ¥3,600,000 (¥2,400,000 Growth Investment Quota + ¥1,200,000 Tsumitate/accumulation quota); lifetime investment limit ¥18,000,000 per person (¥12,000,000 Growth + ¥6,000,000 Tsumitate). No time limit on the tax-exempt holding period (the previous system had a 5–20 year limit).
¥3,600,000/year (Shin-NISA 2024 onward). ¥18,000,000 lifetime.
Not portable internationally — must liquidate (or transfer to a taxable account) within 1 year of losing Japan residency status. Capital gains are then assessed by your new country of residence. Plan the timing of your departure carefully.
NISA accounts are available at Japanese securities companies (Rakuten Securities, SBI Securities, Matsui Securities). Open an account after establishing a Japanese bank account. The 2024 Shin-NISA significantly improved the scheme — growth investment is now unlimited in time horizon and the annual contribution ceiling is much higher. Highly recommended as a complementary vehicle to iDeCo for long-term Japan residents.
Early Retirement Options
Japan's pension system is not designed for early retirement before age 60 — state pension earliest from age 60 at a permanent 24% reduction. iDeCo is earliest accessible from age 60. NISA investments can be accessed at any time without penalty. For foreign nationals considering FIRE (Financially Independent, Retire Early) in Japan: the Long-Term Resident visa or Highly Skilled Professional visa PR pathway provide stable residency without employment requirements after receiving PR. Financial/passive-income visas are not currently available in Japan — Japan has no equivalent to Portugal's D8 or Thailand's LTR visa. Spouses of working residents on dependent visas (扶養家族 / Fuyo Kazoku) are the most common long-term non-working resident status. Running out of employment income without PR puts residence status at serious risk.
Pension Gap Warning
Critical risks for foreign nationals in Japan: (1) Lump-sum vs future pension: choosing the lump-sum withdrawal (脱退一時金) forfeits all future pension claims from Japanese contributions — do the maths with a specialist before deciding, especially if a totalization agreement applies; (2) 2-year deadline: the lump-sum application window closes exactly 2 years after departure — missing it means losing access to the refund entirely; (3) 60-month cap: you cannot recover more than 60 months of contributions via the lump sum regardless of how long you contributed; (4) iDeCo portability: iDeCo assets cannot be transferred overseas and remain locked until age 60 — factor this into departure planning; (5) NISA closure on departure: NISA must be liquidated or transferred to a taxable account within 1 year of leaving Japan; (6) Pension gap years: self-employed periods with exempted contributions count at reduced rate — voluntary additional contributions can buy back exempted periods before departure. POSITIVE CHANGE — iDeCo December 2026 reform: employee monthly limits rising from ¥23,000 to ¥62,000 is a major improvement for expats wanting to accelerate savings. Consult the Japan Pension Service (0570-05-1165) or an English-speaking Sharoushi for personalised advice.
Useful Links
Retirement & Pension
Unlock the complete Retirement & Pension guide for Japan — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere