Kosei Nenkin has maximum contribution age at 70
There are two kinds of Japanese pensions in its system – “Kokumin Nenkin” (国民年金, National Pension) and “Kosei Nenkin” (厚生年金, Employees’ Pension Insurance).
|Who contributes||How to contribute||Maximum age to contribute|
|Kokumin Nenkin||All the residents other than employees||Residents pay by themselves||Age 60|
|Kosei Nenkin||Employees hired by employers||Employers withhold contributions from employees’ salary (Gensen Choshu)||Age 70|
The maximum age to contribute Kokumin is at 60. Therefore Japanese residents over age 60 do not have to pay their pension, if they are not employed anymore.
However, employees need to pay Kosei Nenkin over age 60 up to age 70. So they keep paying it by getting witheld from their salary (Gensen Choshu). If you have a qualification to receive Japanese old age pension, then after age 65 you will both receive old age pension and contribute Koesei Nenkin simultaneously. Sounds strange but it is the Japanese pension system. But you cannot receive old age pension if you don’t have a qualification to receive it (= less than 10 year’s contribution), even if you pay Kosei Nenkin after age 60.
There is no maximum age to claim lump-sum pension refund (Lump-sum Withdrawal Payments)
Non-Japanese who work in Japan for a short period can claim lump-sum pension refund (Lump-sum Withdrawal Payments). Lump-sum pension refund does not have its maximum age to claim, so non-Japanese who are employed over age 60 can claim the refund of paid Kosei Nenkin after leaving Japan (it needs to be claimed within 2 years).
Japanese private companies and public offices have a custom called “Teinen Taishoku” (定年退職), under that they have an employment policy to fire all their employees at age 60. This custom is still alive in many private companies and public offices. It is why many Japanese people regard age 60 as the period to “end paying pension”.However, this idea is not correct because persons who keep employed over age 60 need to contribute Kosei Nenkin. If you are over age 60 and employed by a Japanese company, then please confirm whether or not the employer withholds Kosei Nenkin from your salary. Please also note that the withheld Kosei Nenkin can get back through claiming its lump-sum pension refund.
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