National Pension
国民年金 (Kokumin Nenkin)
Japan's national pension is a mandatory public retirement scheme for all residents aged 20–59. It forms the foundation layer of retirement income. For foreign residents, there is a special lump-sum withdrawal system when you leave Japan permanently — but the rules are strict and time-limited.
"Think of the national pension as a forced savings club. Every month the government takes ¥16,980 from you and puts it in a communal pot. When you reach retirement age, you get a monthly cheque from that pot for the rest of your life. The more months you contributed, the bigger the cheque."
The 'forced' part is what makes it different from regular savings — you cannot opt out if you are a resident. The 'communal' part means it's not your personal account being returned to you; it's a promise by the government to pay you based on how long you participated. This is why foreigners who leave Japan can't take their full contributions back — the system was never a savings account.
All residents of Japan aged 20–59 must enrol in national pension — regardless of nationality. Enrollment categories:
Category 1 (第1号被保険者) — Self-employed, freelancers, students, part-timers not covered by Shakai Hoken. Pay ¥16,980/month directly.
Category 2 (第2号被保険者) — Company employees covered by Shakai Hoken. Automatically enrolled; premium deducted with Shakai Hoken. They actually pay into employee pension (厚生年金), which includes national pension.
Category 3 (第3号被保険者) — Spouses of Category 2 who earn under ¥1.3M/year. Pay ¥0 — their contributions are covered collectively by the Category 2 pool.
If you leave Japan permanently and have been contributing to the national pension (or employee pension), you can apply for a lump-sum withdrawal payment (脱退一時金) — a partial refund of your contributions.
Eligibility Conditions — ALL must be met:
1. You are a non-Japanese national
2. You have contributed for at least 6 months
3. You do not have the right to receive a Japanese pension (i.e., less than 10 years total qualifying period — or you have not reached 65)
4. You have already left Japan (deregistered from residence)
5. You apply within 2 years of leaving Japan
6. You have never previously received a lump-sum withdrawal for the same period
Important: Japan has Social Security Agreements with many countries (USA, UK, Germany, France, South Korea, etc.). Under these agreements, your Japan pension contributions may count toward your home country's pension — in which case the lump-sum withdrawal might not be the best choice. Check if your country has an agreement first.
| Contribution Months | National Pension Amount (approx.) | Employee Pension (varies by income) |
|---|---|---|
| 6–11 months | 6 months × rate | Based on average standard monthly remuneration |
| 12–17 months | 12 months × rate | |
| 18–23 months | 18 months × rate | |
| 24–29 months | 24 months × rate | |
| 30–35 months | 30 months × rate | |
| 36–41 months | 36 months × rate | |
| 42–47 months | 42 months × rate | |
| 48–53 months | 48 months × rate | |
| 54–59 months | 54 months × rate | |
| 60 months+ | 60 months × rate (capped at 60) | Capped at 60 months worth |
To receive any pension at age 65, you need at least 10 years (120 months) of qualifying period. Periods covered by Kokuho, Shakai Hoken, and certain exemption periods all count. Before 2017, the minimum was 25 years — it was reduced to make the system fairer.
The full basic pension requires 40 years (480 months) of contributions. In 2026 this pays approximately ¥68,000/month. With employee pension on top (厚生年金), the total can reach ¥150,000–250,000/month depending on career earnings.
If your income is low, you can apply for a full or partial exemption from paying premiums. The qualifying period still counts toward your 10-year minimum (at a reduced rate for half-exemptions). Apply annually at your city hall.
If you didn't contribute enough by age 60, you can voluntarily continue paying until age 70 to increase your eventual pension amount. This is called 任意加入 (voluntary enrollment).
If you become disabled (grade 1 or 2 under Japan's disability certification system), you can receive a disability pension regardless of age. Grade 1: ¥102,000+/month. Grade 2: ¥81,500+/month. Must have contributed for at least 2/3 of your eligible period (or all contributions in the 13 months before disability onset).
If a contributor dies, their spouse (with dependent children) or dependent children can receive a survivor's pension. This requires the deceased had sufficient contribution history. Amounts depend on the number of dependent children.
Japan has Social Security Agreements (社会保障協定) with these countries (as of 2026), which prevent double-payment of pension contributions and may allow contribution periods to be combined:
| Country | Agreement In Force | Key Benefit |
|---|---|---|
| United States | October 2005 | Combined periods count; avoid double contributions |
| United Kingdom | February 2001 | Combined periods for minimum qualification |
| Germany | January 2000 | Eliminate double contributions |
| France | June 2007 | Combined qualifying periods |
| Belgium | January 2007 | Avoid dual contributions |
| Canada | March 2008 | Combined qualifying periods |
| Australia | January 2009 | Avoid double contributions |
| Netherlands | March 2010 | Avoid dual contributions |
| Czech Republic | June 2009 | Avoid dual contributions |
| Spain | December 2010 | Combined qualifying periods |
| Ireland | December 2010 | Avoid dual contributions |
| Brazil | March 2012 | Combined qualifying periods |
| Switzerland | March 2012 | Avoid dual contributions |
| Hungary | January 2014 | Avoid dual contributions |
| India | October 2016 | Avoid dual contributions |
| Luxembourg | August 2017 | Avoid dual contributions |
| Philippines | August 2018 | Avoid dual contributions |
| Slovakia | July 2019 | Avoid dual contributions |
| China | March 2022 | Avoid dual contributions |
| Finland | February 2022 | Avoid dual contributions |
| Sweden | June 2022 | Avoid dual contributions |
iDeCo is Japan's voluntary individual pension account — separate from national pension. Contributions are fully tax-deductible, investments grow tax-free, and withdrawals are taxed at favourable rates.
Contribution limits (monthly):
• Self-employed (Category 1): up to ¥68,000/month
• Employee with no company pension: up to ¥23,000/month
• Employee with company DC pension: up to ¥20,000/month (varies)
• Employee with company DB pension: up to ¥12,000/month
Tax benefit example: A freelancer contributing ¥68,000/month (¥816,000/year) saves approximately ¥160,000+ in income and resident tax annually.
Note for foreigners: iDeCo funds are locked until age 60 (or age 75 in some cases). If you plan to leave Japan before then, you cannot withdraw early — this makes it less attractive for short-term residents.