How much is the pension in Japan?

With more than 29% of its population aged 65 or older, Japan is often called a 'super-aging' society. For those planning their retirement or living in the country, understanding exactly how much is the pension in Japan is crucial, yet the answer depends on several factors.

Quick Summary

The Japanese pension system is multi-tiered, with the final payout amount determined by your contribution history and the pension scheme you were part of, not a single, fixed sum. The average retiree on the employees' pension receives a significantly larger amount than those on the basic national pension alone.

Key Points

• Two-Tier System: Japan's public pension has two tiers—the flat-rate National Pension for all residents and the earnings-related Employees' Pension for company workers.

• Average Employee Pension: The average monthly pension for an employee contributing to both tiers is significantly higher than the basic National Pension alone.

• Basic Pension Amount: As of FY 2025, the full annual National Pension benefit is around ¥831,700 for those with 40 years of contributions.

• Full Contribution Period: To receive the full National Pension amount, you must have contributed for a total of 40 years (480 months).

• Proportional Payouts: If you contribute for less than 40 years, your National Pension benefit is reduced proportionally.

• Flexible Claiming Age: You can start collecting your pension as early as age 60 for a reduced benefit or delay it until age 75 for a higher payout.

• Foreign Resident Payments: Non-Japanese residents who leave Japan may be eligible for a Lump-Sum Withdrawal Payment if they have contributed for at least six months and less than 10 years.

Understanding Japan's Two-Tier Public Pension System

The Japanese public pension system is composed of two primary tiers: the National Pension (Kokumin Nenkin) and the Employees' Pension Insurance (EPI, or Kosei Nenkin). Almost all residents aged 20 to 59 must contribute to the National Pension, which forms the foundation of their retirement income. The Employees' Pension is an additional, earnings-related system for company workers.

The National Pension (Tier 1)

This is the basic, flat-rate pension, mandatory for most residents aged 20 to 59. It is mandatory for all Japanese residents, including foreign nationals, students, and the self-employed. To receive the full benefit, you must contribute for 40 years. As of fiscal year 2025, the full annual benefit is approximately ¥831,700. Payments start at age 65, but can be started early with a reduced amount or delayed for a higher amount. Benefits are calculated proportionally based on your total contribution period.

The Employees' Pension Insurance (Tier 2)

This second tier is for employees of companies and public-sector workers. The contributions are split 50/50 between the employer and the employee and are deducted from your salary. The total contribution rate is 18.3% of your salary, with both the employer and employee each paying 9.15%. The benefit is based on a complex formula considering your average salary and total years of contribution. For those on the Employees' Pension, the monthly benefit is significantly higher than for those on the National Pension alone.

How Pension Amounts Compare: National vs. Employee Pension

The amount received in retirement varies depending on contributions to both tiers. Here is a simplified comparison.

Feature	National Pension (Kokumin Nenkin)	Employees' Pension (Kosei Nenkin)
Who Pays	All residents (20–59), including self-employed, students, unemployed.	Employees at eligible companies and public-sector workers.
Contribution Type	Flat-rate premium (e.g., ¥17,510/mo in 2025).	Earnings-related (18.3% of salary, split 50/50 with employer).
Calculation	Based on years of contribution, with 40 years for a full payout.	Based on salary and contribution period, plus the National Pension.
Potential Payout	Up to ¥831,700 annually (for 40 years contrib.).	Significantly higher, as it includes the National Pension amount plus an earnings-related portion.

Navigating the Pension System: A Case-by-Case Breakdown

Your personal situation determines your potential pension. For example, a person with 40 years at a company contributing to both tiers will receive a higher, more stable retirement income. In contrast, a self-employed individual contributing only to the National Pension for 40 years would receive approximately ¥831,700 annually, which many supplement with private savings. A foreign resident working in Japan for a short time who leaves the country may be eligible for a Lump-Sum Withdrawal Payment, refunding a portion of their contributions but forfeiting that coverage. The refund is limited to a maximum of five years of contributions.

Other Important Factors to Consider

• Retirement Age: You can delay payments up to age 75 for a significant increase (184% of the standard amount) or claim early at age 60 for a lower amount (76% of the standard).
• Voluntary Contributions: Self-employed individuals can increase their basic pension benefit with an additional monthly premium.
• Exemptions: Low-income individuals may apply for contribution exemptions or postponements, providing disability and survivor's benefits. However, exempted periods do not contribute fully to the old-age pension benefit amount unless repaid.

Conclusion: Planning for a Secure Retirement in Japan

Ultimately, there is no single answer to how much is the pension in Japan? The amount depends on your specific situation, such as your employment history and whether you were self-employed or an employee. For many, especially those relying on the basic national pension, additional savings through private pensions (like iDeCo) or investment accounts (like NISA) are essential. Given the complexities, seeking personalized advice from a pension expert is recommended. A good place to start your research is the official Japan Pension Service website.

Official Japan Pension Service Website

For detailed information and resources on the Japanese pension system, visit the official website here: Japan Pension Service.

Frequently Asked Questions

What is the minimum contribution period to receive a Japanese pension?

You must have a minimum of 10 years of total contributions to qualify for a Japanese pension. This includes contribution-paid periods as well as certain exemption periods.

Do foreigners living in Japan have to pay into the pension system?

Yes, all registered residents of Japan, including foreign nationals, between the ages of 20 and 59 are required to contribute to the National Pension system.

Can I receive a bigger pension by delaying payments?

Yes, you can choose to delay your pension payments past the standard age of 65, potentially up to age 75. This will result in a higher annual benefit for the rest of your life.

What is the Lump-Sum Withdrawal Payment for foreigners?

The Lump-Sum Withdrawal Payment allows non-Japanese residents who contributed to the system for a short period (between 6 months and 10 years) to reclaim a portion of their contributions after leaving Japan.

Does working for a company affect my pension amount?

Yes, if you work for a company, you are enrolled in the Employees' Pension Insurance (EPI), which is an additional tier on top of the basic National Pension. This typically leads to a significantly higher total pension amount.

Are there tax advantages for Japanese pension contributions?

Yes, contributions to the public pension system are tax-deductible as social insurance contributions, which can help lower your taxable income.

What happens if I cannot afford to pay my pension contributions?

If you have a low income, you can apply for a contribution exemption or postponement. If approved, you may be fully or partially exempted from payments, though this can affect your final pension payout.