Japan’s pension system applies to all residents — including foreign nationals — from the age of 20. Understanding how enrollment works, what contributions are due, and crucially, how to claim a lump-sum withdrawal when you leave Japan, helps you make informed decisions about your contributions throughout your stay.
Japan’s Two-Tier Pension System
Japan’s public pension system (公的年金) has two main tiers:
- National Pension (国民年金, Kokumin Nenkin) — the base tier. All residents aged 20–59 are required to enroll. Monthly contribution as of 2024: approximately ¥16,980/month (flat rate for all). Managed by the Japan Pension Service (日本年金機構). Provides a basic flat-rate retirement pension, disability pension, and survivor pension.
- Employees’ Pension Insurance (厚生年金, Kōsei Nenkin) — the earnings-related tier for employees. If you work for a Japanese employer, your employer enrolls you automatically; contributions are split approximately 50/50 between you and your employer. Replaces National Pension enrollment — you pay into Kōsei Nenkin and automatically get credit toward Kokumin Nenkin as well.
Enrollment as a Foreign Resident
Employed residents: Your employer handles enrollment in Kōsei Nenkin automatically. Contributions are deducted from your salary before you receive it — you will see them on your pay slip (給与明細) as 厚生年金 and 健康保険 deductions.
Self-employed, freelance, or non-working residents: Enroll in Kokumin Nenkin at your ward office within 14 days of establishing residence. Bring your residence card and My Number. If you have a period without income or financial hardship, you can apply for contribution exemption or reduction (保険料免除・納付猶予) — partial or full exemption is available based on income level. Approved exemption periods still count as partial pension credit.
Totalization Agreements (社会保障協定)
Japan has social security totalization agreements with several countries — including the US, UK, Germany, South Korea, Australia, Belgium, France, Canada, Netherlands, Czech Republic, Spain, Ireland, Brazil, Switzerland, Hungary, India, Luxembourg, Philippines, Slovakia, China, Italy, Sweden, and Portugal. Under these agreements, you may be able to avoid paying into both Japan’s pension system and your home country’s system simultaneously, and qualifying periods in both countries may be combined for eligibility purposes. Check with the Japan Pension Service and your home country’s social security office for your specific situation.
Lump-Sum Withdrawal (脱退一時金, Dattai Ichijinkin) on Departure
This is the most practically important feature for foreign residents who do not plan to retire in Japan. If you leave Japan permanently having contributed to the National Pension (or Employees’ Pension) for at least 6 months, you can apply for a lump-sum withdrawal (脱退一時金) within 2 years of leaving Japan.
Key points:
- You must have lost your Japanese address (left Japan or de-registered) and be a non-Japanese national
- Apply within 2 years of leaving — this deadline is firm
- The refund amount is based on your total contributions and capped at a maximum equivalent of approximately 3–5 years of contributions (the cap has been updated several times; check the Japan Pension Service’s current figure at nenkin.go.jp)
- A 20.42% withholding tax is deducted from the lump-sum payment — you may be able to claim a refund through your home country’s tax authority depending on the Japan-source income tax treaty
- Application is submitted by mail from outside Japan to the Japan Pension Service; forms available at nenkin.go.jp
Receiving a Japanese Pension in Retirement
If you accumulate 10 years (120 months) of pension contributions in Japan (or combined with a totalization-agreement country), you become eligible to receive a Japanese pension. The pension is payable overseas — the Japan Pension Service can send payments internationally. For those planning a long-term stay or permanent residency, the pension system is a genuine retirement benefit worth preserving rather than withdrawing.
My Number and Pension
Your pension record is linked to your My Number (マイナンバー). You can check your pension contribution record online via the Nenkin Net (ねんきんネット) service at nenkin.go.jp — create an account using your Nenkin Techo (年金手帳, blue pension booklet issued at enrollment) or My Number card. Review your record periodically to confirm contributions are being credited correctly — contribution gaps can occur if your employer changes or periods of self-employment are not properly enrolled.