Japan Pension Refund 2026: How Foreigners Claim ¥400,000+ When Leaving Japan

Japan’s Pension System: What Every Foreigner Needs to Know

If you live and work in Japan, you are legally required to enroll in Japan’s pension system — regardless of your nationality. This surprises many expats, but it’s true: Japan’s National Pension (国民年金 / Kokumin Nenkin) and Employees’ Pension Insurance (厚生年金 / Kosei Nenkin) are mandatory for all residents aged 20–59.

The good news is that Japan has Social Security Agreements with many countries to prevent double contributions, and there’s a Lump-Sum Withdrawal Payment (脱退一時金) system that lets you reclaim some contributions when you leave Japan permanently.

Two Types of Pension in Japan

1. National Pension (国民年金 / Kokumin Nenkin)

This is the basic pension for all residents aged 20–59. Monthly contribution: ¥16,980 (2024 rate, adjusted annually). Self-employed workers, students, and those not covered by workplace pension pay this directly. If enrolled for the full 40 years (480 months), you receive approximately ¥816,000/year (¥68,000/month) in retirement.

2. Employees’ Pension Insurance (厚生年金 / Kosei Nenkin)

If you work for a Japanese company, you’re automatically enrolled in the Employees’ Pension. Contributions are approximately 18.3% of your monthly salary, split equally between you and your employer (you pay ~9.15%). This pension pays more than the National Pension and includes the National Pension within it — so you’re covered for both.

Enrollment: How and Where

Company Employees

Your employer handles enrollment automatically when you start work. Your contributions are deducted directly from your salary. No action required on your part beyond providing your My Number.

Self-Employed, Freelancers, Students

1. Visit your local City/Ward Office (市区町村役所)
2. Bring your Residence Card (在留カード), My Number, and passport
3. Complete the enrollment form (国民年金被保険者資格取得届)
4. Receive your Pension Book (年金手帳) or confirmation
5. Pay monthly via bank transfer, convenience store, or credit card

Pension Contribution Costs (2024)

Exemptions and Reductions

If you’re struggling financially, Japan offers National Pension payment exemptions:

• Full Exemption (全額免除): Pay nothing, but receive reduced future pension (half the normal amount for exempt periods)
• 3/4 Exemption, Half Exemption, 1/4 Exemption: Partial payments accepted
• Student Special Payment System: Students can defer payments until after graduation
• Young People (Under 50) Special Exemption: For those under 50 with low income

Apply for exemptions at your local city office. Exempt periods still count toward your enrollment period for eligibility purposes.

Social Security Agreements: Avoid Double Contributions

Japan has Social Security Agreements with these countries to prevent paying into two pension systems simultaneously:

• 🇺🇸 United States | 🇬🇧 United Kingdom | 🇩🇪 Germany | 🇫🇷 France
• 🇰🇷 South Korea | 🇨🇳 China | 🇨🇦 Canada | 🇦🇺 Australia
• 🇧🇪 Belgium | 🇳🇱 Netherlands | 🇮🇹 Italy | 🇪🇸 Spain | 🇨🇿 Czech Republic
• 🇧🇷 Brazil | 🇸🇰 Slovakia | 🇭🇺 Hungary | 🇮🇳 India | 🇵🇭 Philippines

If your country has an agreement with Japan, you may be exempt from Japanese pension contributions if you’re on a short-term assignment (typically under 5 years) and continue contributing to your home country’s system. Check with your employer’s HR department or a pension specialist.

The Lump-Sum Withdrawal Payment (脱退一時金)

This is one of the most important things for expats to know. If you leave Japan permanently and have contributed to the National Pension for at least 6 months, you can claim a one-time lump-sum refund of part of your contributions.

How to Claim

1. Leave Japan (your residence registration is cancelled)
2. Apply within 2 years of leaving Japan
3. Submit the application to the Japan Pension Service from abroad
4. Provide: passport copy, bank account details (overseas), proof of leaving Japan, pension book/number
5. The payment is made in Japanese yen to your designated overseas bank account
6. A 20.42% withholding tax is deducted, but you may be able to reclaim some via your home country’s tax treaty

Lump-Sum Payment Amounts (2024)

Note: Employees’ Pension (Kosei Nenkin) lump-sum amounts are higher and calculated differently based on your average standard monthly remuneration.

Can You Collect a Japanese Pension from Abroad?

Yes — if you meet the eligibility requirements. To receive a Japan pension, you must have paid into the system for a total of 10 years (120 months). If you’ve contributed for less than 10 years but have periods from a country with a Social Security Agreement, those periods may be combined to meet the threshold.

Pension payments can be sent to overseas bank accounts. You’ll need to notify the Japan Pension Service of your address changes and submit a life certificate (現況届) annually to continue receiving payments.

Useful Contacts

• Japan Pension Service (日本年金機構): nenkin.go.jp/international/english
• Pension Consultation (English): 0570-05-1165 (weekdays 8:30–17:15)
• Local Pension Office (年金事務所): Find yours at nenkin.go.jp
• My Number / Social Insurance Number: Required for all pension procedures

Frequently Asked Questions

Is pension enrollment really mandatory for foreigners?

Yes. Under the National Pension Act, all residents aged 20–59 — including foreigners on long-term visas — must enroll. Failure to pay can result in loss of exemption eligibility and reduced future benefits. Company employees are enrolled automatically.

What if I’m only in Japan for 1–2 years?

You must still enroll if you’re a registered resident. After leaving, you can apply for the Lump-Sum Withdrawal Payment within 2 years to recoup some contributions.

Can I opt out of the pension system?

No — you cannot opt out entirely. However, you can apply for an exemption if your income is below certain thresholds.

What happens to my pension if I die in Japan?

Survivor’s pension (遺族年金) may be payable to your dependents. If you have no dependents or haven’t contributed enough, a Death Lump-Sum Payment (死亡一時金) may be paid to your beneficiaries.