living on a state pension (nenkin) in Japan... WOULD NOT WANT TO TRY TO DO THIS (RetireJapan reacts)
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- Опубликовано: 29 сен 2024
- 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！』 • 【年金生活の現実】支給日まで残り1か月で…全...
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 was a definite societal mistrust of investing (likely fallout from the bubble) but thankfully that seems to be getting better. This kind of need report will hopefully help!
I enjoyed your commentary and would have gladly listened to another hour or in this style. Pleasant and informative.
Thank you! That's really kind.
Almost didn't make it as I wasn't sure how it would turn out 😀
Pretty much my worst nightmare. But that nightmare has been great motivation.
Even with the amount I have I can’t help but be frugal most of the time. I’m not into expensive restaurants or the like, but I do like my drink, which I do at home. And the sake I drink hasn’t increased in price 😆
BTW that beer in his fridge was that hoposh stuff so it’s not expensive. But I totally agree, let him have his daily long size. 👍
Yep, the people who aren't thinking about this are the ones I worry about 😔
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
It's always the same: the people who worry about it probably don't need to, and those that never think about it probably should! 😬
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.
That's why we are here -everyone needs to be thinking about this stuff a little bit 😅
Nenkin is not and has never been income replacement. It's a supplemental income to help with some of the living costs incurred by pensioners or a lifeline for low income people. Look at the low monthly premium and ask yourself if you could ever pay so little and expect so much.
I'll be 45 next year and still haven't got any Nisa, am I too late?
Absolutely not! The new NISA is starting next month, so if you use that you will be fine. We have some videos about it on this channel, and we'll be doing more content on it soon 😀
I’m 45 too starting new nisa in 24. Paying off the house in 24 too. I just won the lottery because now university is free if you have 3+ kids! Yayyy.
My forced retirement is age 71 so just save and hang in there.
Slow and steady wins the race😀@@GTV-Japan
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.
Really glad to be seeing this kind of thing on TV and online. Thanks for the kind comments -seems quite a few people enjoyed this style of video 😀
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…
Yeah, doing that for a month might be kind of fun. Doing it for the rest of your life (decades!) might not.
Always better to have options 😀
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.
It just seems sensible to make sure you'll be okay in the future 😀
I'm a bit surprised about Tanaka-san at 6:10, as he says he pays medical fees of 300,000 a year. As far as I know, if you pay more than 100,000 Yen, you can get the rest back when you file for tax return. As he isn't working, obviously this rule doesn't apply to him, but isn't there a similar theme for pensioners like him?
Well, you can claim a deduction against your income taxes of any medical expenses over 100,000 yen a year (up to 100,000 yen total) but that isn't of much use if you don't pay income taxes.
There is also the large medical expense cap system which might be more useful. I am curious as to whether he was able to make use of it. Multiple hospital stays over several months would add up, but I think there is an annual cap as well as a monthly one...
Did you say we could invest in vanguard with nisa?
You can buy US listed Vanguard ETFs in the growth portion of NISA with most brokers.
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.
More financial knowledge and awareness across the population would be great.
That was beer in his refrigerator but I think it was the absolutely cheapest brand of beer you can get in the grocery store. My wife wouldn't touch it. She is currently into "craft beer" which can go for over 300 Yen per 350 ml can.
Great video mate 🙏🏻
Thank you.
This is a great video, hope you do some more like this!
Thanks, I really enjoyed making it. If I find more good clips to react to I will 😁
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?
Americans cannot use iDeco due to PFIC rules. But DC should be okay if their companies offer it.
Yeah, everyone should be paying nenkin if they live here. For their own sake as well as to comply with the law.
@@scottmclellan3455 That's not exactly right. PFIC inside of a retirement account, like iDeCo, should be fine.
12:21 in he's 74 his daughters are both 28 (Twins maybe) . as you say, looks like an interesting backstory there
Oooh, good catch. I didn't notice the numbers, just the kanji (長女, eldest daughter and 二女, second daughter). Been here too long!
@@RetireJapan_OGIt happens after you cross that 20 years line ;-) .. either way the guy 頑張った！笑
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.
Well, I am not a nenkin doomer.
I think the closer you are to receiving nenkin, the more accurate the predictions are. But for younger people I imagine contributions will rise and payouts will fall in the future.
Happy to be wrong about that though!
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!
No need to invest in the Japanese stock market, there are plenty of global or US funds here.
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
Lots of tough questions. I think there are two things here: the systemic issues and the personal ones.
I mainly focus on what people can do to prepare and try to make sure they will have a comfortable life now and in the future.
I have to agree with lots of systemic and personal reasons. Unfortunately for many older immigrants. No matter how much they put into the Japanese pension scheme, NISA or IDECO now, they may never have enough to live. Especially as their health deteriotes. Thankfully,we're doing our best with NISA and IDECO but it would be helpful to know, JUST INCASE things did go tits up! LOL
@@RetireJapan_OG
Maybe he has been lazy in his younger days
Possibly. The main guy certainly seems to have NOT prepared well for retirement.
Very sad, because once you get to that point there is not a lot you can do to get out of it.
@@RetireJapan_OG well I disagree...in Japan system is designed for old people to be able to work till they die in Japan. The government wants such people to work because rich old people don't have wage income so they don't need to pay income tax. These rich old people support Japanese politicians. The government want to punish these old poor people who have no choice working till they die.
not lazy, many japanese people living within there means...