Japan's pension system is a mandatory, two-tiered program designed to provide financial stability to residents in retirement, during disability, or for survivors. The specific monthly pension amount you receive depends heavily on which system you belong to and your contribution history.
The National Pension (Kokumin Nenkin)
The National Pension is the foundational tier covering freelancers, the self-employed, students, and spouses of salaried employees. Enrollment is mandatory for residents aged 20 to 59. Contributions are a flat rate (¥17,510 for FY 2025), with a full benefit of about ¥69,308 monthly in FY 2025 after 40 years of contributions. A minimum of 10 years of contributions is needed for eligibility.
The Employees' Pension Insurance (Kosei Nenkin)
This is the second tier for company employees and automatically includes National Pension coverage. Contributions are income-based, shared by employee and employer. Benefits are based on average salary and enrollment period, typically resulting in a higher payout than the National Pension alone. Average combined benefits were estimated to be over ¥200,000 per month in early 2025.
Comparison of Japanese Pension Systems
| Feature | National Pension (Kokumin Nenkin) | Employees' Pension Insurance (Kosei Nenkin) |
|---|---|---|
| Who it covers | Self-employed, students, unemployed, and dependent spouses (Category 1 & 3) | Full-time employees and civil servants (Category 2) |
| Contribution Type | Flat-rate (e.g., ¥17,510/month for FY 2025) | Income-based (9.15% each from employee and employer) |
| Benefit Calculation | Flat-rate, based on contribution duration | Income-based, proportional to average salary and contribution period |
| Included Plans | Not applicable | Automatically includes National Pension benefits |
| Estimated Monthly Payout | Approx. ¥69,308 for a full 40 years (FY 2025) | Significantly higher, as it combines the basic and earnings-based portions |
| Flexibility | Benefit is reduced if started early (age 60) and increased if deferred (up to age 75) | Same early/deferred options available |
Pension Options for Foreigners
Foreign residents aged 20-59 must enroll in the system. Those leaving Japan permanently with at least six months but less than 10 years of contributions may be eligible for a Lump-Sum Withdrawal Payment. This amount is based on contribution period, capped at 60 months, and is subject to a tax that can be refunded. Claiming this payment forfeits past enrollment periods and is not possible if eligible for the full pension. Japan also has social security agreements with some countries to prevent double contributions and combine coverage periods.
Conclusion
The monthly pension in Japan varies based on whether you are covered by the flat-rate National Pension (approx. ¥69,308 monthly for full contributions in FY 2025) or the income-based Employees' Pension, which provides a significantly higher, income-dependent amount. Foreign residents are subject to this mandatory system and have options like the lump-sum withdrawal or social security agreements. Experts recommend supplemental savings. More information is available from {Link: Japan Pension Service https://www.nenkin.go.jp/international/index.html}.
