Complete Guide to Japan's Pension System for Foreigners

⚡ 30-second answer: National Pension ¥16,610/month (FY2026), Employee Pension 18.3% of salary (split 9.15% each between employer and employee). Foreigners with visas exceeding 3 months must enroll, with "Lump-Sum Withdrawal Payment" available on departure (up to 5 years / 60 months). Social security agreements with 23 countries — US, Germany, UK, Korea, Australia can avoid dual enrollment.

Quick reference	Value
National Pension	¥16,610/month
Employee Pension	Salary × 18.3% (split)
Payout start	Age 65
Years to qualify	10
Lump-sum cap	60 months
Last verified	June 2026

30-Second Answer

Japan's public pension is a two-tier system: National Pension (Tier 1) and Employee Pension (Tier 2). Foreigners with visas over 3 months and an address in Japan must enroll. Company employees pay Employee Pension (18.3% of salary, split 50/50); the self-employed and unemployed pay National Pension (¥16,610/month, FY2026). Payouts start at age 65, with a 10-year minimum contribution requirement. Returning home before 10 years? Apply for "Lump-Sum Withdrawal Payment" — up to 60 months (5 years) refunded (Employee Pension scales with salary; National Pension capped at ¥508,800 for 5 years). Social security agreements with 23 countries (US, Germany, UK, Korea, Australia, Canada, France, etc.) let postings under 5 years pay only home pension; over 5 years means Japan enrollment. Without an agreement, dual enrollment is unavoidable — recover via Lump-Sum Withdrawal.

System Overview Top 12

Cost Breakdown

Typical pension-related costs:

• National Pension: ¥16,610/month (¥199,320/year)
• Prepayment discounts: -¥3,520 (1 year), -¥14,830 (2 years)
• Additional pension: +¥400/month → +¥200/month for life
• National Pension Fund: ¥6,000-¥68,000/month (optional)
• iDeCo: ¥5,000-¥68,000/month (self-employed cap)
• Employee Pension: 18.3% of salary (split 9.15% each)
• Health Insurance bundled: ~10% of salary separately
• Long-term care (40+): +~1.6%
• Payout start age: 65
• Full (40 years) basic pension: ¥831,696/year
• Average Employee Pension (model): ¥145,000-¥225,000/month
• Lump-sum (National Pension 5 yr): ~¥508,800
• Lump-sum (Employee Pension): Salary-based
• Tax: Public pension is miscellaneous income

A ¥300,000/month employee pays ¥27,490 in pension (self-portion after split); self-employed pay ¥16,610 plus any optional.

Support for Tourists and Foreigners

English support: Japan Pension Service "Foreigner Hotline" (0570-028-115), foreigner desks at pension offices (Shinjuku, Minato, Shibuya), and FRESC (Foreign Residents Support Center, Yotsuya). Lump-sum applications can be mailed within 2 years after departure, with English-version forms on the Japan Pension Service site. Payment to Japan bank in JPY, or overseas via SWIFT (¥3,000-¥10,000 deduction). Routing through Wise or Revolut local bank accounts keeps post-receipt FX costs at 0.4-0.7%. Social security agreement countries should obtain a "Certificate of Coverage" before posting to avoid dual enrollment. Agreement specifics vary by country — confirm with the home-country social insurance consultant pre-arrival.

Enrollment and Withdrawal Flow

• STEP 1: Visa status, residence record
• STEP 2: Enroll via pension office or company
• STEP 3: Receive Basic Pension Number notice
• STEP 4: Monthly premiums (auto-deducted from salary)
• STEP 5: Check Nenkin Net records
• STEP 6: Estimate Lump-Sum Withdrawal pre-departure
• STEP 7: Update address and payout account pre-departure
• STEP 8: Apply for Lump-Sum within 2 years of departure
• STEP 9: Japan Pension Service review (3-6 months)
• STEP 10: Transfer to designated account (20.42% withheld)

From Lump-Sum application to payout typically 4-6 months.

Payment Methods

• National Pension: Auto-debit / payment slip / credit card / convenience store / Pay-easy
• Employee Pension: Salary deduction (split)
• Prepayment: Auto-debit gets max discount
• Lump-Sum receipt: Japan bank or overseas bank SWIFT
• Overseas transfers: Wise/Revolut for post-receipt currency conversion
• Credit cards: National Pension only — useful for points
• Convenience store: Up to ¥300K with payment slip
• Apps: PayPay billing supported
• Cashless: Prepayment beats month-to-month on cost

Example: ¥508,800 Lump-Sum received in USD via Wise — local currency conversion ~0.4-0.6%.

Watch Out For

• Mandatory enrollment: 3+ month visa = required
• Non-payment: Demands → seizure (last resort)
• Lump-sum cap: 60 months only; month 61+ doesn't come back
• Agreement countries: 23 nations; under 5 years posting = home pension only
• Non-agreement countries: Dual enrollment unavoidable; recover via Lump-Sum
• iDeCo: Locked until 60, not part of Lump-Sum
• Tax: 20.42% withheld from Lump-Sum; mostly refundable via tax filing
• Future pension amount: Years × valuation — under 10 years usually zero

5 Common Mistakes

1. Skipping enrollment: Treated as unpaid = credit damage
2. Expecting refunds over 5 years: Months 61+ not returned
3. Missing agreement check: Dual enrollment in two countries
4. Past 2-year deadline: Lump-Sum right expires
5. Not filing refund: Most of the 20.42% withholding comes back via filing

Pre-Departure Checklist

• Visa, residence record, Basic Pension Number
• Contribution record via Nenkin Net
• Confirm agreement country status
• Get Certificate of Coverage from home country
• Estimate Lump-Sum (up to 60 months)
• Set payout account (Japan or overseas SWIFT)
• Configure Wise/Revolut local receipt
• File address change pre-departure
• Exit strategy for severance, iDeCo, DC plan
• Prepare tax refund (designated tax representative)

FAQ

Q1: Do foreigners need to enroll? A: Yes — over 3-month visa with address means mandatory enrollment.

Q2: National Pension premium? A: FY2026 ¥16,610/month (¥199,320/year).

Q3: Employee Pension premium? A: 18.3% of salary split 50/50, employee pays 9.15%.

Q4: How much from Lump-Sum? A: Up to 60 months. National Pension 5 years ≈ ¥508,800; Employee Pension depends on salary.

Q5: Social security agreement? A: 23 countries. Under 5 years posting = home only; over 5 = Japan enrollment.

Editorial info: Yen Finder Editorial / Last verified June 2026.