I have lived in japan for nearly three years now, and as my work visa will expire soon. I wonder if it’s a better option to take the lump sum option while I’m at it. However, I plan to return to japan in the near future as me and my fiancé are planning to get married. We have been together for 4+ years plus.
Therefore, is it wiser to take it now ? Or wait and take it in the future?
The exchange rate really sucks at the moment, but I thought about if it’s worth waiting in the future instead.
Thank you.
5 comments
If you plan to come back and stay longer, you also have the plan of -not- taking it at all and actually see if you’ll get a pension or not.
When you’re young, getting the money now, as a lump sum, even if not a lot, is the attractive choice. Having a recurring pension, even small, becomes much more attractive the older you get.
If you decide to take the lump sum, the corresponding contribution period will be forfeited. You can’t buy back / overcontribute.
So take the time you need to evaluate options… If you don’t need that money right here right now, -not- touching it could be an option.
If you take it, be sure you put it into something like an IRA or other retirement product…
Invest it and there should be no problem. Lots of things are a better return that the Japanese pension. If you are in your 20s then sure. However if you are just going to spend the cash, then leave it along.
I think it’s better to leave it for now if you plan to live in Japan.(make sure you call the nenkin jimusho to tell them you’re going out of Japan so they won’t keep billing you)
If you only going to stay in Japan for a few years after you get married, then taking it now might be an option too, but just make sure that you have some time because from what I heard it takes quite a time to be processed.
My opinion is for you to talk with your fiance after reading all the comments here.
Be sure to read the totalitization agreement between Japan and your home country.