This little piggybank hopes that Japan's ailing pension system will not go into cardiac arrest before it is her turn to collect.

Collecting your pension dues. Barry Brophy explains the nitty-gritty of a Japanese pension (Japan Times)

After those who leave Japan, hand in their gaijin cards and apply for their 2.4 month refund, the remaining millions of yen they've paid into the system stay in Japan, where the money is used to pay pension payments for those they left behind.

The Japanese pension system is essentially run on the basis that what you contribute now is not necessarily what you receive in the future.

An inability to benefit doesn't remove your obligation under the system. Rather, successive generations are expected to provide for those that came before. What this means is that temporary foreign residents and working-age Japanese are essentially paying for the pensions of older Japanese.

You already got a gaijin piggy? What about the working gaijins? Do you contribute to the Japanese system?

The Japanese pension system is essentially run on the basis that what you contribute now is not necessarily what you receive in the future.

This is how the US Social Security system works, as well, and should be solvent for the better part of the century as it stands now. The Bush administration is pushing to change this to individual retirement accounts, where you would have some control over the investements but no longer have guaranteed money, as investements may or may not pan out.

jingai wrote:

The Japanese pension system is essentially run on the basis that what you contribute now is not necessarily what you receive in the future.

This is how the US Social Security system works, as well, and should be solvent for the better part of the century as it stands now. The Bush administration is pushing to change this to individual retirement accounts, where you would have some control over the investements but no longer have guaranteed money, as investements may or may not pan out.

I know, it works the same way in most European countries too. What do you expect to do when you decide to get out of Japan after let's say 10 years. Don't you think it is necessary to figure out another way facing globalization? Are you contributing just like in the States? Since the European Union you are able to work in all of those countries that joined. But there is still no international system.

Moral of the story: Plan your own retirement and don't count on the govt (of any country) to bail you out.

check the small print and get good advice when setting up private pensions. things to look out for:

will the policy pay out to your partner or children when you die? are there extra charges for this? how long will the policy pay out for etc? (many will only pay out for 5 years compared the period should you have lived)

can you cash the policy in for a lump sum then reduced payments later?

its also worth keeping an eye on your forthcoming retirement date should you become seriously ill late in life (if you dont and start receiving payments then the hopefully substantial amount of money which buys your fund dissapears leaving only monthly payments for your family)

having spent a lot of time going thru the legal process with the 7 or 8 pensions my late father had set up, i`m of the opinion that a lot of pension companies are worse than banks or insurance companies..

get lots of advice and think carefully before signing imho..

vir-jin wrote: What do you expect to do when you decide to get out of Japan after let's say 10 years. Don't you think it is necessary to figure out another way facing globalization? Are you contributing just like in the States? Since the European Union you are able to work in all of those countries that joined. But there is still no international system.

If you work in Japan and your home country has a reciprocal pension agreement like most(?) EU countries and the brand-new agreement the US made this year with Japan, your pension payments are transferred to your home country's state pension system.

For me that means I can chose whether to collect from Japan or the US whichever pension system is the most solvent and offers me the best deal. It sort of like having a Backup Pension System since both Japan and the US allowing benefits from overseas.

See more info on the recently-updated, long-running thread: Pension & Health Insurance payments

vvx wrote:Moral of the story: Plan your own retirement and don't count on the govt (of any country) to bail you out.

AMEN...

Start getting your shit together earlier rather than later, whether it be funds or super-annuation or property or shares. Do not think that the pension will support you in your dodage because it will not. So if you would like to maintain a good standard of living until you die, get yourself organised.

If you don't know what to do or how to organise it, get some advice from many different sources and take control of your future.

I bought my first house at the age of 21 and have never looked back.