https://www.retirejapan.com/forum/viewtopic.php?t=2591

kokumin nenkin
kousei nenkin
net cost of something
compound interest calculator –> gain by investing privately
– deduct capital gains tax on any growth
– safe withdrawal rate: decide how to use that money
– compare to: 3 years kokumin nenkin contribution
3/40 of the full amount
15% tax deduction
net 500,000 for 3 years back payment???

500,000 equates to $3571
current age 30
35 years
at 5% interest: approx $19,700

capital gain tax
20% gain on growth
= 20% from $19,700 – $3571
= 20% from 16,129
= 3,225

net = $19,700 – $3,225 = $16,475

3 years of kokumin nenkin
58,500 yen annually

4% withdrawal on $16,475 = $659 = 92,260 yen annually

month 1 & month 480 have equal bearing on the amount you receive
–> attractive to divert some early months as a lump sum

back payments: tax deduct
(how much?)

5% yearly interest: too good to be true

regular payment (contribution), e.g., pension, health insurance
– reduce taxable income

main attraction of government backed pension is you don’t rely on market performance when your investment is growing or when you are drawing from it

obligatory
student exemption

claim payment up to 5 years – not recommended