💴 Money, Tax & Insurance
The Japanese Pension Isn't a "Waste of Money" — Pension Basics for Foreign Workers
It isn't lost even if you go home. Once you understand it, you'll see it differently
📖 8 min read📅 2026-07-27
"They take this much out every month, and I'm going home anyway — it's just money down the drain."
Carlos (30), from São Paulo, Brazil, pointed at the "Employees' Pension" line on his payslip and said exactly that to a coworker. He'd been working in Japan for two years. Over ¥20,000 was taken out as pension every month. To Carlos, who planned to return to his home country one day, it looked like nothing but "money being taken away."
There are many foreign workers who think the same way. "Japan's pension has nothing to do with foreigners." "I'll never get it anyway." — you hear these things all the time.
But his coworker quietly replied: "A friend of mine couldn't work for six months after an accident on the job, and the disability pension kept him going. The pension isn't just for old age."
There was something Carlos didn't know — that the pension is also insurance against the "what ifs" that can happen while you're young. And that when you return home, there's a system called the "lump-sum withdrawal payment" that lets you get money back.
If you don't understand how it works, Japan's pension looks like a waste of money. But once you do, you see it differently. Here are answers to the most common questions, in FAQ form.
The pension can look complicated, but once you grasp a few key points, it makes sense. Let's go through "why you pay it" and "what happens when you go home," one step at a time. The figures are for fiscal year 2026 (Reiwa 8).
❓ Frequently Asked Questions
Q.Do foreigners also have to enroll in the pension?
A.Yes. Regardless of nationality, anyone living in Japan aged 20 to under 60 is required to enroll in the public pension. Company employees (full-time workers) enroll in the "Employees' Pension," with premiums deducted directly from their salary. The self-employed, the unemployed, and students enroll in the "National Pension." This is an obligation set by law — there is no exemption simply because you are a foreigner.
Q.What types of pension are there? How much are the premiums?
A.The public pension has two tiers. The first tier is the "National Pension (basic pension)"; the second tier is the "Employees' Pension," an additional layer that company employees join. When a company employee joins the Employees' Pension, they are automatically treated as enrolled in the National Pension as well. [Employees' Pension] The premium rate is 18.3% of salary, but the company and the employee each pay half, so your actual burden is about 9.15%. It is deducted from your salary. [National Pension] For fiscal year 2026 (Reiwa 8), it is ¥17,920 per month. You pay it yourself. There is also an exemption system (explained below).
Q.Isn't it a waste of money since I'm going home anyway?
A.It's easy to think so, but the pension isn't only for old age. The pension is insurance that covers three things: "old age, disability, and death." ① If you become unable to work because of an illness or injury that leaves you disabled, you can receive a "disability pension" as long as you were enrolled at the time. ② If an enrollee passes away, a "survivors' pension" is paid to the family they leave behind. These protect against the "what ifs" that can happen even to young people. On top of that, those who return home can receive part of the premiums they paid back as a "lump-sum withdrawal payment" (explained in the next question).
Q.What is the "lump-sum withdrawal payment" when I go home?
A.It is a system that lets foreign nationals leaving Japan receive part of the pension premiums they paid back as a one-time lump sum. The conditions for claiming it are: ① you do not have Japanese nationality, ② you were enrolled in the pension for 6 months or more, ③ you no longer have an address in Japan, ④ you do not meet the qualifying period for the old-age pension (10 years), and ⑤ you claim it within 2 years of losing your eligibility. Since April 2021, the cap on the calculation was raised from 3 years' worth to **5 years' worth** (because more people now work for 5 years on the Specified Skilled Worker status). Be sure to confirm the procedure before you leave Japan.
Q.Are there any cautions when I receive the lump-sum withdrawal payment?
A.Yes. When you receive the lump-sum withdrawal payment, the enrollment period used to calculate it is treated as "never having existed," and your pension enrollment record up to that point is reset. If you later work in Japan again and want to receive a pension, the past period can no longer be counted toward it. Also, people from countries that have signed a "social security agreement" with Japan — such as Germany, the United States, the Philippines, and Brazil — may have the option of combining their Japanese enrollment period with their home country's pension. Decide carefully before going home whether to "take the lump sum" or "carry it forward toward a future pension."
Q.What if paying the premiums is financially difficult?
A.The National Pension has an "exemption / deferral" system. If your income is low or you have lost your job, you can apply to have all or part of your premiums exempted, or to defer payment. There is also a "student payment special exception" for students. **Foreigners can apply too** (the Japan Pension Service provides guidance in 14 languages). What matters is not to leave premiums "unpaid" just because you can't afford them. An exempted period still counts toward your qualifying period and keeps protections like the disability pension intact, whereas unpaid periods can leave you without coverage.
Q.When and how much can I receive from the pension?
A.The old-age pension can, in principle, be received from age 65. To qualify, you need "10 years or more of enrollment" (shortened from 25 years to 10 years in August 2017). If you work in Japan for 10 years or more, you keep the right to receive a Japanese pension in the future, even after returning home. You can also start receiving it earlier than 65 (with a reduced amount) or later (with an increased amount). You can check your own enrollment record on "Nenkin Net" or My Number Portal.
🤝 Where to get help (free, multilingual, anonymous OK)
Pension Office / Nenkin Dial (Japan Pension Service)
You can consult about enrollment procedures, exemption applications, and the lump-sum withdrawal payment. Multilingual guidance materials are also available.
🌐 Japanese (guidance materials in English, Chinese, Vietnamese, Nepali, Burmese, and other languages) ⏰ Mon–Fri 8:30–17:15 (until 19:00 on Mondays)
📝 Contact via web →📞 0570-05-1165
