BeyondTokyoBoleh

What to Do With Your Japanese Pension When You Leave the Country

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by

Kat
in

　

If you’re a foreigner leaving Japan, one big question comes up quickly:

What should you do with your Japanese pension?

When I was preparing to leave, I wasn’t sure if it was a permanent move or just temporary—and honestly, I had no idea what to do with my pension either. I was clueless how much I can withdraw as well.

If you’re feeling the same, this guide will walk you through your options, such as claiming a Lump-sum Withdrawal Payment, in a simple, clear way so you can make the right decision for yourself.

　

Table Of Contents

　

What Is the Lump-sum Withdrawal Payment?

It’s a one-time payment you can claim after leaving Japan, based on the time you contributed to the pension system.

This applies to:

  • National Pension (Kokumin Nenkin)
  • Employees’ Pension Insurance (Kosei Nenkin)

　

Who Can Apply?

You can apply if you meet all of these conditions:

  1. You are not a Japanese citizen
  2. You contributed to the pension system for at least 6 months
  3. You no longer live in Japan
  4. You have never qualified for a Japanese pension

Important: You must apply within 2 years after leaving Japan.

　

The Big Trade-Off

Before applying, understand this clearly:

If you claim the lump sum,
you lose ALL your pension history in Japan.

That means:

  • Those years will no longer count toward a future pension
  • You cannot combine them with pensions from other countries later

　

When Should You NOT Apply?

You should think twice if:

  • You have 10 years (120 months) or more of contributions
    → You may qualify for a Japanese pension in the future
    → You can only withdraw 5 years worth of contributions
  • You will work in countries that have a social security agreement with Japan (e.g. USA, UK, Germany, Australia, etc.)
    → You might be able to combine years across countries

Once you take the lump sum, that option is gone.

　

What Documents Do You Need?

You’ll need:

  • A completed claim form
  • A copy of your passport
  • Proof that you’ve left Japan (unless you filed a moving-out notice)
  • Your bank account details (must be in your name)
  • Your Basic Pension Number (from your pension book or notice)

　

When and How to Submit

Submit after you leave Japan (or after your official move-out date)

If mailing from Japan, make sure it arrives after your move-out date

　

How Much Will You Get?

The amount depends on how long you contributed.

  • Maximum calculation: 60 months (5 years)
  • Even if you contributed longer (e.g. 7 years),
    you’ll still only be paid up to 5 years—but lose all 7 years of records

《The calculation method》

National Pension:
Lump-sum Withdrawal Payment Amount = National pension premium amount for the year that includes
the month (base month) when the insurance premium contribution was paid last time
× 1/2 × Number used for calculation of the Payment Amount

Employee Pension:
Lump-sum Withdrawal Payment Amount
= Average standard remuneration of the insured period** × Payment rate* ((Insurance rate*** × 1/2)
× Number according to the number of months of the insured period)

You can check how much you have contributed on Nenkin Net or call the Japan Pension Service.

*Please note that the calculation method is different if you have contributed prior to April 2021.

　

Taxes (Important!)

For Employees’ Pension, about 20.42% tax is withheld

You may claim a refund later by:

  • Appointing a tax agent in Japan
  • Filing a tax return

For National Pension, no tax is withheld

　

Final Thoughts & What I did

This decision is more important than it looks.

If you’re sure you won’t return to Japan
→ Taking the lump sum can make sense

But if there’s any chance you’ll:

  • Work in Japan again
  • Stay long-term
  • Combine pensions internationally

→ You might want to keep your pension record instead

For me, Malaysia doesn’t have a pension agreement with Japan, and I was not sure if I will stay in Malaysia forever, thus I left my pension record as it is.
I decided to give myself 2 years time to decide if I want to withdraw my pension.
At that time, I hadn’t reached 120 months yet—I would have needed about 2 more years to qualify for a pension.

　

Simple Rule of Thumb

Short stay (<10 years): Lump sum might be worth it
Long-term or global career: Think carefully before claiming

　

Reference: https://www.nenkin.go.jp/international/english/japanese-system/benefit/payment.files/A.pdf

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