The Japanese state pension (nenkin) is not particularly generous, and many people struggle to survive if they have to live on it without savings or other income.
In this video Ben from RetireJapan comments on a TV news spot showcasing pensioners and how they try to cope with low monthly incomes
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See the original video here:【年金生活の現実】支給日まで残り1か月で…全財産5万円『気になる！』…(read more)
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Living on a state pension, or nenkin, in Japan can be a challenging and daunting experience. The retirement age in Japan is 65, and once retirees reach this age, they become eligible for the state pension. However, the amount received from the state pension is often not enough to cover the cost of living comfortably in Japan.
RetireJapan, a leading retirement resources and information platform for expats in Japan, strongly advises against relying solely on the state pension for retirement income. The cost of living in Japan, especially in major cities like Tokyo and Osaka, can be quite high, and the state pension may not be sufficient to cover basic expenses such as rent, utilities, and healthcare.
Expats living on a state pension may find it challenging to maintain a good quality of life in Japan. Housing and healthcare costs in particular can quickly deplete a retiree’s savings. Additionally, the state pension may not be enough to cover daily expenses such as food, transportation, and leisure activities.
RetireJapan recommends that retirees explore alternative sources of income to supplement their state pension. This could include part-time work, freelancing, or investment opportunities. Retirees should also consider downsizing their living arrangements, relocating to more affordable areas, or seeking assistance from social welfare programs.
It is important for expats in Japan to plan and save for retirement early on to avoid relying solely on the state pension. Taking the time to invest in retirement savings and explore various income streams will provide retirees with the financial security needed to enjoy their golden years in Japan.
In conclusion, living on a state pension in Japan can be a difficult and unsustainable option for retirees. RetireJapan encourages expats to proactively plan for their retirement and seek alternative sources of income to ensure a comfortable and secure post-retirement life in Japan.
Thank you for the video Ben. Just wondering why you think most people won't get 260000 in pension in the future. For any salaried worker paying Shakai Hoken, as a couple that amount would be normal, if not even a pessimistic prediction. It's not a 100% guarantee like it used to be but I would estimate very roughly that it would still be applicable to about 75% of pensioners.
12:21 in he's 74 his daughters are both 28 (Twins maybe) . as you say, looks like an interesting backstory there
One thing not addressed that I think we need to know is, how can we pay for medical bills if we get 5万 a month or less. Are some of them receiving sekatsu hogo? and what's the criteria for them to receive some help? Why aren't pensioners protesting? Does the shoganai culture resigns them to a life of misery? As for the guy with the beer. Good for him. It's not just about physical needs, We need something to lift our mental health, to make life worth living. Sadly I think more immigrants will be in a worse state as they won't have any pension at all, or very little from the Japanese system. While I understand NISA is a good thing, it won't help people today or in the next 10 years. What's worse is as people get older, their health deteriorates, and that's going to cost for meds, and consultations. It's great the NISA,IDECO, but i wonder how can we help pensioners today. Reminds me of how the UK used to treat their pensioners. Hopefully, the show will raise awareness of this problem. I remember soe pensioner eating grass because the city wouldn't help him
Really like this kind of video content. Thanks for posting it. That poor guy and couple though. I'm so glad I've got my NISA and iDeco going.
This is great they are making these kinds of TV shows, should be a wake up call to Japan. Great content, please make more vids like this.
I'll be 45 next year and still haven't got any Nisa, am I too late?
As someone who isn't sure if he will retire here, investing is a bit tricky – if I would move, I'd lose the nenkin I bought into of course, but I could take my ideco and other investments along I guess, but the Japanese stock market isn't as healthy as European or American markets from what I've seen so far, and there's of course the exchange rates.
Not that I'm not investing though, that would be the worst choice I think!
This is a good summary of the popular series of videos on those who are currently retired in Japan and those who are investing for retirement.
The typical "salary man" who just works for someone else for their entire life in Japan will not know much about how the national and local income tax works, how their health insurance premium is calculated, etc. The employer deducts these expenses and make adjustments along the way. The employee doesn't need to bother filing a tax return. For interest from Japanese bank and taxable investment returns from Japanese brokerage, they still don't need to file a tax return because they can get take the automatic witholding option.
While it is convenient to not have to hire a tax preparer or learning to prepare your own tax, you end up relying on the "system" which doesn't help your own financial literacy.
The distrust of financial market is an aftermath from the super bubble era that ended in 1990.
Japanese government finally woke up and started to have schools offer financial literacy class. The next generation might turn out to be O.K. but this will take a very long time.
From an American perspective, it just seems like Americans living in Japan, who don't pay either nenkin or US social security (usually, as self-employment tax) are simply asking for grief in the future. At minimum, they should be paying nenkin, and, if Ideco is available, contributing to it. If they have the ability to do US social security, they should jump at it. Everyone acts like 2040 or 2050, 2060 isn't going to happen. But guess what?
I feel like there are just different types of people in the world. I know so many with zero plans that simply do not thing about these things. Meanwhile I’m sitting here with a plan and a nest egg freaking out
I enjoyed your commentary and would have gladly listened to another hour or in this style. Pleasant and informative.
I’ve always had the mindset of living on less than you make and sacrificing today to live better tomorrow. I can’t even imagine living like this. Only in the last few years my wife has realized how important that decision was and often said at the beginning of our marriage “why can’t we spend more”. I know everyone’s situation is different but it’s frustrating to know I did this sacrifice while many others lived their life. I hold my tongue not knowing exactly why this happened to them, but also I think many of them did it to themselves by not sacrificing when they were younger and fill less pity on them now.
Anyone paying a pension in Japan will never see a yen of it in 10-15 years. The system is a Ponzi scheme. The reason why rates are low is the government won't raise them out of fear of being unelected as it is the mass gerontocracy that decides Japan's scary future.
It wasn't until my daughter was born that something clicked. Now I have iDeCo and NISA going. It's been a tough sell to the wife though. I feel like many Japanese people don't understand or don't trust investing….. or both!
There used to be tv shows every now and then where people try to live off 10000 a month. Those were funny, but were meant to be. I’m not so worried. I’m sure if Eikaiwa still exists in the future we can all “work” a few hours a week to get by. Also I’m the cheaper people alive! Who needs beer? I use just one teabag a day! My family on the other hand…
NISA is definitely recommended, especially to someone in the their early 30's. Invest in yourself in your 20's and even try investing/trading stocks on your own. If you realize you are too busy or don't really have a good trading strategy, just sign up for NISA as soon as you turn 30. I'm a part time Japanese stock trader with a fulltime job. My annual profits from stock trading is far greater than my salary. I also have a stock portfolio with high dividend stocks. I can pay rent just with my dividend money. Because of this, I don't have a NISA account. But whenever my friends ask me what to do with their money, I tell them to just sign up for NISA. If you have money to buy drinks, put that money into NISA, you won't regret it.
Maybe he has been lazy in his younger days