Pensions in Japan comprise the
National Pension system run by the government, and a series of voluntary private pension plans.
National pension
The National Pension system, which is administered the
Japan Pension Service
The is a Government organization administered by the Ministry of Health, Labour and Welfare. On January 1, 2010, it replaced the Social Insurance Agency.International Social Security Association websitEstablishment of the "Japan Pension Service"R ...
, is the state pension program, and all registered residents aged 20 to 59, both Japanese citizens and legal foreign residents, are obliged to contribute to it. Contributions are deducted from employee paychecks, while the self-employed pay a set amount. The size of a pension is determined by the amount of contributions made into the system.
Non-Japanese who had short periods of National Pension coverage may withdraw a lump sum from the system.
[https://www.nenkin.go.jp/international/english/lumpsum/lumpsum.html]
The Japanese government maintains the
Government Pension Investment Fund
, or GPIF, is an incorporated administrative agency (an independent administrative institution), established by the Japanese government. It is the largest pool of retirement savings in the world. Japan's GPIF is the largest public fund investor ...
, which makes investments designed to ensure the stability of the system at minimal risk.
Private pensions
Firms with 500 or more employees are covered by employee pension funds, and they may opt out of the National Pension system provided 50% higher benefits. Employee Pension Funds are independent legal entities from their companies, and are managed by a committee comprising an equal number of employer and employee representatives.
[
]
References
{{Japan-gov-stub