The pension system in Japan is a complex and often confusing topic for both citizens and foreigners alike. With an aging population and economic changes, it is crucial to understand the ins and outs of the system in order to plan for retirement. This comprehensive guide will break down the key components of the pension system in Japan and provide valuable insights for those living and working in the country.
First and foremost, it’s important to understand that the pension system in Japan is divided into two main categories: the National Pension and the Employees’ Pension. The National Pension is for self-employed individuals and those working at small companies, while the Employees’ Pension is for those working at larger companies. Both systems have their own set of rules and requirements, but the ultimate goal is to provide a steady income for retirees.
In order to receive pension benefits, individuals must make contributions throughout their working years. For the National Pension, this starts at the age of 20 and continues until the age of 60. The contributions are based on a percentage of one’s income, with a maximum cap set each year. As for the Employees’ Pension, contributions are made through the employer and are also based on a percentage of one’s income. It’s important to note that contributions for both systems are mandatory for all residents in Japan, including foreigners with a valid visa.
One key aspect
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