Should I skip Kokumin Nenkin?

Hi, I have a question about the Kokumin Nenkin payment system..
I came to Japan 3 years ago as a student, and started working in a company from this month (april). The company requires every employee to enter the company's Kousei Nenkin, which means I have to apply for the Kokumin Nenkin first, which is to be converted to the company's Kousei Nenkin. Since I just applied for the Kokumin Nenkin last week, the Kuyakusho said I only have to pay the fee for the last 2 years. I mentioned that I was a student for the last 2 years, but they told me that the exemption only applies for the last one year, which leaves me with first one year of Nenkin to pay.

I know that this money will be returned when I retire. My concern is, I don't really know if I am going to be retiring in Japan in the future. I heard that you will be refunded only a portion of the Nenkin if you leave the country, so I thought I'd like to reduce the amount I pay as much as possible.

Is there going to be any penalty for skipping this first one year? Will it prevent me from receiving the pension fund if I happen to retire in Japan? What do you guys suggest I do?

It might be worth consulting with an independent nenkin specialist and check whether the kuyakusho people are telling you the entire truth and all of your options.

It is difficult for me to imagine that you are required to pay a past year's worth of pension premiums.

The exactly same thing happened to me.

I was student and never heard about students paying nenkin. Once, I moved to a new location and the kuyakusho told me I should have applied even as student. Obviously I contested and they told me I could claim no income for the years I was in Japan already and, therefore, I wouldn't need to pay.

Although I didn't need to pay they, however, made me fill up some application form for the kokumin nenkin for the last 2 years (which I thought very idiotic since I told them I was in Japan for many more years already... meaningless application)

So, I received the 2 years bills, because accodring to the kuyakusho, they must send you, however, they told me not to pay it and to trash it right away. Every year, upon being enroled in the system, you have to go to the kuyakusho and apply for the claim, so you don't need to pay.

DONT PAY THIS REMAINING YEAR! THe information they gave you is not correct! I am 100% sure of what I am saying since it was the kuyakusho that told me NOT TO PAY (since I was student).

.... you might want to consider:

depending on the country you are from, there are agreements with Japan that the time you paid over here will be added to the time in your country and similar stuff.

As for me (I am a native German who has lived over here for the past 18 years) the time I worked in Germany will be added to the time in Japan. You might want to check on the internet for those agreements or even get with your embassy.

It�fs so funny.
Here is a Nenkin story again.
It seems there is no foreigner who understands Nenkin�fs aim correctly.

Is there going to be any penalty for skipping this first one year?

Off course, there is a penalty.
Come on, and make your common sense.
If there is no penalty, everyone try to refuse to pay.

Will it prevent me from receiving the pension fund if I happen to retire in Japan?

If you retire 22yeras later, you cannot get the pension, because you need the Nenkin paying record 25 years and more (your first years was not made).
Even if you retire 30years later, it will reduce an amount of the pension you can get.

so I thought I'd like to reduce the amount I pay as much as possible.

More you pay more you can get, and less you pay less you can get.


It is difficult for me to imagine that you are required to pay a past year's worth of pension premiums.

The point is that it is not the matter of worth or not.
It is the cooperation.

DONT PAY THIS REMAINING YEAR!

You are wrong.
He cannot pay for his first year, even if he wants to.
He lost his right.

The information they gave you is not correct! I am 100% sure of what I am saying

There is every kind of truth for one fact.
The information he got is correct too.

it was the kuyakusho that told me NOT TO PAY (since I was student).

Which year was it?
The system has been renewed after 2000 March.
All student need to pay the Nenkin fee now.

I think that you should check to see if your country has a Totalization Agreement with Japan. The USA does. If there is an agreement, this affects your decision. The contributions will result in a pension payment from Japan even if you do not work 25 years in Japan. Years paid into your own country's national pension count as years paid into Japan's.

I will be entitled to the Social Security pay in US, as I have lived & worked in US most of my years, along with Japanese nenkin when I turn 60 even though only a few $ as I only worked for a few years in Japan. When I worked in Japan, my company paid the mandatory kousei nenkin for me. I checked to make sure my account was in the system when there was a scandal a few years ago (some were inadvertently dropped out from the system even though they(or their company)have been paying. Huge embarrassment to the Japanese govenment. Then, I had an option to enroll in the voluntary kokumin nenkin system but I declined after doing some math(my own IRA investing returns much much better).
The bottom line is to check with your home country retirement pension program and see if there is a agreement with Japan. Make sure your name is in the system (I am sure it is anymore) so you will be paid in addition to your pension in your home country when you retire. kokumin nenkin is up to you.

Is kokumin nenkin (assuming not taking the other pension options) compulsory?

I've never paid, almost 57 years old, and will retire abroad, where I have full pension.

If I should have been paying, and slipped through the net, is it likely I might get a letter one day asking me too pay (even though I clearly won't benefit from that system)?

A pretty number of the Japanese also don't pay it.
There is no penal regulation. You merely lose a right to receive a pension in future, even if you ignore a notification issued from Social Insurance Agency. Nobody sue about that neglecting.

It really depends on your life plan.
Payments to Japan's pension system will be a waste if you don't plan to retire there.
If that's the case, go with another option in the private sector (company pension, investing in blue chips, whatever) that's flexible no matter where you live.
I just don't like the fact that my payments are basically going towards supporting the current generation of Japanese retirees while Japan's population is rapidly aging, meaning more retirees to support per young worker's nenkin payment...
Hope this was insightful.