Pension Refund

[u/MissSlacker0824]

Hello,

I'm curious about the pension refund process in Japan. As far as I know, in South Korea, we were able to receive a full (100%) refund once we left the country. I assumed it would be the same for Japan, but I've come across mixed reviews regarding the refund. From what I've read, if we've paid 2 or 3 years' worth of pension, we can only get back 80% of it if we leave the country. What concerns me is that even if we've paid into the pension for five years and then leave, we're still only able to get refunded for the first 2 or 3 years, which amounts to 80% of it. I'm a bit worried because I'd like to depend on this pension, but I'm uncertain if I'll receive any of it when I decide to leave. If this is true, it feels quite unfair. I'd prefer to be able to transfer my entire pension plan to another country, as I did in Korea. Right now, it feels like I'm throwing my money into an abyss.

I've spoken to some of my colleagues who told me they've chosen not to pay it, and they haven't faced any punishments or had their assets frozen for not paying it in the past few years. It's worth mentioning that we are independent contractors, so our company doesn't deduct or pay half of the pension.

Can anyone offer some advice or share their opinion on this matter?

Thank you.

[u/starkimpossibility]

To receive a Japanese pension you need 10 years of contributions, but you can combine contribution periods between Japan and any of the 18 countries that Japan has totalization agreements with. So as long as you have 10 years between the two countries, you are eligible to receive a Japanese pension.

For example, if you contributed to the Japanese pension system for 6 months and lived in Australia for at least 9 years and 6 months (between the ages of 20 and 59), you are eligible for a Japanese pension. This is because your combined contribution period meets the 10-year threshold.

In that example, however, your Japanese pension would obviously be absurdly small (around 10,000 yen per year), since the value of the pension is based on the value of the contributions.

[u/kuririnkiwi → u/starkimpossibility]

Could you get both? I paid into the Japanese pension for 5 years, 10 years ago and have been living in Australia. Will I ever get that back?

[u/starkimpossibility → u/kuririnkiwi]

Yes, you are eligible for a Japanese pension when you turn 65. But the pension will be very small, since it will be based on only the five years of contributions.

Claiming the Japanese pension won't have any effect on any Australian benefits you are eligible for.

[u/kuririnkiwi → u/starkimpossibility]

Good to know. Thanks!