Well, it's that time of year again. My 年金定期便 (pension statement) just arrived, so here are the latest numbers. You can read about the background to the nenkin system in last year's post, so I'm not going to repeat everything here again. We'll just be talking about changes and updates from last year.
As you can see in the picture above, I have made another year of contributions, taking my total months paid in to 214. You need to pay in for 120 months in order to be able to claim a pension from Japan (ten full years of payments).
The twelve months of kosei nenkin payments have increased my yearly pension from 788,404 yen to 843,612 yen, an increase of 55,208. I could pay in for another 19 years, which at this rate would add just over one million yen to my annual pension and give me a pension of around two million yen.
My wife will probably receive around one million yen a year in pension, giving us a pretty decent income floor of 3 million yen a year.
I think we could live on that if we had to, and should be able to supplement it with income and drawdowns from our investments. I think the worst case scenario for nenkin is that they will reduce the eventual payments by about a third, which would be unfortunate but not really affect us too badly.
I'm also paying into the UK state pension voluntarily, which should provide us with an extra million yen a year or so.
If you have not paid in enough to claim a pension yet (under 120 months) your pension statement will not show projected payouts yet.
You can also check your pension online by making an account at the Nenkin Net website (confusingly the website address is not nenkin.net but rather nenkin.go.jp).
If, like me, you are a member of a kyosai you will not be able to see your information online but instead would have to ask the kyosai itself for the information, or wait until you receive your update in the mail each year (around your birthday).
How about you? How's your pension situation?