Job Discussion Forums

[chinchon]

Hi there, I'm just about to return to Japan with my wife (Japanese), and we are hoping to be there for a few years at least. I've been applying for kindergarten jobs, as I have teaching experience and credentials in that age range. The schools are private and don't appear to be associated with the local authorities.

I'm 34 and I'm wondering what my pension options will be living in Japan. I can't set up a UK pension and continue paying into it in Japan because there are tax benefits that only UK tax-payers are allowed. There was no mention of a pension option in any of the job ads that I've gone for either.

What do other long-term expats do for pensions/savings? Is there anybody who could tell me about transfer-ability if I were to pay into a pension scheme in Japan?

Its really an area that I don't know much about so any advice would be appreciated.

Thank you.

[pocoyoswan]

Hi

When you say "I can't set up a UK pension and continue paying into it in Japan because there are tax benefits that only UK tax-payers are allowed" I presume you mean a private pension plan as opposed to the state pension?

Please look at:

"Expatriates are allowed to continue paying into a UK personal pension for up to five years. Advisers also suggest that expatriates consider paying voluntary National Insurance contributions to preserve their State pension entitlements. "

Source: http://www.thisismoney.co.uk/mortgages-and-homes/tips-and-guides/article.html?in_article_id=395352&in_page_id=53957&in_advicepage_id=117

In order to receive the full UK State pension, which is supposed to rise to �140.00 per week under this government you need to pay 30 years national insurance contributions. I presume at age 34 you have between 10-15 years contributions? If you go to Japan you can buy national insurance contributions for just over �600 per year. Every year of national insurance contributions is worth �107 per year after you retire so if you live long, its worth it!!! Source : http://www.guardian.co.uk/money/2009/feb/15/ni-contributions-rise-state-pensions.

Very few schools in Japan offer "Shaken Hokai" which they are supposed to offer by law but hey, read other posts going back years on the subject. Shaken Hokai cover pension and unemployment benefit and other stuff and you need to pay into it in Japan for 25 years to get any pension benefit back from it otherwise its money down the sinkhole.

With the Japanese state pension, because of demographics and the ageing Japanese population, I wouldn't be to confident about the Japanese government's ability to continue with pensions at there current level.

As for private pension schemes in Japan, I have no idea but I have never seen any company in my many years advertise a private pension scheme being available for employees.

Good luck in your quest to come to Japan and yes, pension advice is boring.....

[Glenski]

[Apsara]

[pocoyoswan]

The UK agreement with Japan is not a totalisation agreement so you would still need to pay 30 years into the UK for a full pension or 25 years into a Japanese pension. Maybe it will change in future.

[chinchon]

I'd like to say thanks to everyone who has offered advice on this thread. I think it would be most convenient for me to continue my UK state pension contributions while in Japan, and I've arranged to speak to an advisor about that.

Anyway, if anybody else has additional info I would love to hear about it.

Cheers